The Time Value of Money (TVM) is a fundamental principle in finance which holds that a certain amount of money today has a greater value than that same amount in the future. This principle is a reflection of the opportunity for earning interest or generating investment returns over time. For example, if you have $100 today, you could invest it to earn interest, meaning that in the future, you would have more than $100. The concept is rooted in the idea of opportunity cost, inflation, and risk. Mathematically, TVM is commonly expressed using formulas to calculate present value (PV) and future value (FV), taking into account interest rates and the number of periods of investment.