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Why Is One Dollar Now Worth More Than One Dollar

Question 1

Multiple Choice

Why is one dollar now worth more than one dollar in the future?


A) Funds can be invested in earning assets to yield a positive return
B) The amount to be received in the future is smaller than the amount to be paid off today
C) The value of interest declines over time
D) The time value of money depreciates over long periods of time

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