The time value of money refers to
A) personal opportunity costs such as time lost on an activity.
B) financial decisions that require borrowing funds from a bank.
C) changes in interest rates due to changes in the supply and demand for money in the national economy.
D) the difference in the value of money depending on when it is received.

Question

Quizplus · Accepted Answer

The time value of money concept posits 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 Refers to