Asked by Theodora Olympia on Jul 07, 2024
Verified
One reason a dollar today is worth more than a dollar 1 year from today is the time value of money.
Time Value
is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.
Money
Money is a medium of exchange in the form of coins and banknotes; by which goods and services are valued and exchanged.
- Recognize the principles and calculations involved in the time value of money, including present value and annuity calculations.
Verified Answer
MH
Mahmoud HamedJul 12, 2024
Final Answer :
True
Explanation :
This is because the value of money changes over time due to factors such as inflation and the potential to earn interest or investment returns. Therefore, a dollar today is worth more than a dollar in the future, as the present value of money is greater than its future value.
Learning Objectives
- Recognize the principles and calculations involved in the time value of money, including present value and annuity calculations.
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