The principle behind time value of money is based on the fact that:
A)a sum of money in hand today is worth more than the same sum in the future.
B)a sum of money in hand today is worth less than the same sum in the future.
C)a sum of money in the future is worth less than the same sum in hand today.
D)a and c

Question

Quizplus · Accepted Answer

The principle of time value of money is based on the idea that a specific amount of money is worth more today than the same amount in the future due to its potential earning capacity. This core principle is reflected in both choices A and C, which are essentially stating the same concept from different perspectives.

The Principle Behind Time Value of Money Is Based on the Fact