The future value of a dollar today is:
A)how many goods and services it can buy today.
B)how many dollars a dollar today can produce at a future date.
C)the value of all goods that a dollar in the future can buy today.
D)the value today of one dollar in the future.

Question

Quizplus · Accepted Answer

The future value of a dollar today refers to how much that dollar can be worth at a future date. This is determined by how much interest or return it can earn over time, making answer B the most accurate choice. Option A refers to the purchasing power of a dollar today, while option C describes the concept of present value. Option D is the opposite of the concept being asked, as it is referring to the value of a future dollar in today's terms.

The Future Value of a Dollar Today Is