Dollars received in the future are worth ________ than dollars received today.The process of calculating what dollars received in the future are worth today is called ________.
A) more; discounting
B) less; discounting
C) more; inflating
D) less; inflating

Question

Quizplus · Accepted Answer

This is because of the concept of time value of money which states that dollars received in the future are worth less than dollars received today due to factors such as inflation and opportunity cost. The process of calculating what dollars received in the future are worth today is called discounting.

Dollars Received in the Future Are Worth ________ Than Dollars