Which of the following statements is (are)true with respect to the time value of money?
I.Money received today is worth more than the same amount of money received in the future.
II.The present value of a future amount is greater than the future amount.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

I is true because it reflects the core principle of the time value of money, which states that a dollar today is worth more than a dollar in the future due to its potential earning capacity. II is incorrect because the present value of a future amount is actually less than the future amount, considering the potential for interest earnings or investment returns over time.

Which of the Following Statements Is (Are)true with Respect to the Time