The core concept that is central to understanding the time-value of money is

Question

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The time-value of money refers to the idea that money today is worth more than the same amount of money in the future. This is because of the potential earning capacity of that money if it is invested and earns interest. Therefore, the interest rate is central to understanding the time-value of money. GDP growth, inflation, and exchange rate can all have an impact on the value of money, but they are not the core concept.

The Core Concept That Is Central to Understanding the Time-Value