Which of the following methods cannot be used to compute the time value of money?

The time value of money (TVM) is a financial principle that acknowledges the value of money changes over time due to potential earning capacity. The correct answer reflects a method that does not align with the core principles of TVM.

The comparison of depreciation methods primarily pertains to asset valuation and accounting, which do not directly address the TVM concept. Depreciation methods, such as straight-line or declining balance, focus on the allocation of the cost of an asset over its useful life rather than the earning potential of money over time.

In contrast, calculating future value involves determining how much an investment made today will grow over a specific period at a certain interest rate, which is central to TVM principles. Estimating present value, on the other hand, is about assessing how much a future sum of money is worth today, again a fundamental application of TVM. Lastly, using interest rate formulas is crucial for understanding how the rate impacts the growth of money over time and serves as a foundational tool for both future and present value calculations.

Thus, comparing depreciation methods does not fit within the umbrella of time value of money calculations, confirming it as the answer that cannot be used to compute TVM.