- Time value of money refers to the concept that money received today is worth more than the same amount in the future due to its potential to earn interest. - There are four key financial concepts related to time value of money: future value of a single amount, present value of a single amount, future value of an annuity, and present value of an annuity. - Compounding interest over long periods of time can significantly increase the value of an investment through the power of compounding, as demonstrated by the example of $1 growing to over $2000 in the stock market over 75 years.