The time value of money concepts do not include
A) interest or the cost of money.
B) payments of principal and interest.
C) present and future values.
D) the risks associated with various investments.

Question

Quizplus · Accepted Answer

The time value of money concepts primarily focus on the idea that a dollar today is worth more than a dollar in the future due to its potential earning capacity. This concept includes interest or the cost of money, payments of principal and interest, and present and future values. However, it does not directly include the risks associated with various investments, as this is more related to investment analysis and risk management rather than the core concept of the time value of money.

The Time Value of Money Concepts Do Not Include