contestada

The time value of money refers to the fact that a dollar received today is worth less than a dollar promised at some time in the future. True or False

Respuesta :

Completely true. If I had a choice between a dollar today or a dollar in 10 years of course I prefer it today which makes it more valuable because:

1) I could put the dollar in a bank account and earn interest over that same 10 years
2) inflation will to some degree lessen the value of that dollar 10 years from now
3) I can consume something with that dollar rather than wait a decade to consume the same thin