The concept of ________ is based on the notion that a dollar paid to you in the future is less valuable to you than a dollar today.
A) present value
B) future value
C) interest
D) deflation

Question

Quizplus · Accepted Answer

The concept of present value is based on the time value of money, which states that the value of a dollar today is worth more than the value of a dollar received in the future. This is because a dollar received today can be invested and earn interest, while a dollar received in the future cannot. Present value calculations are used to determine what an amount of money received in the future is worth in today's dollars.

The Concept of ________ Is Based on the Notion That