The time value of money concept can be defined as:
A) the time in your life when you receive an inheritance.
B) the relationship between money spent versus money received.
C) the relationship between a dollar to be received in the future and a dollar today.
D) the relationship of interest rate stated and amount paid.

Question

Quizplus · Accepted Answer

The time value of money concept refers to the idea that a dollar today is worth more than a dollar in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received.

The Time Value of Money Concept Can Be Defined As