Using time value of money is important when planning for long-term goals.

Question

Quizplus · Accepted Answer

Time value of money refers to the idea that money today is worth more than the same amount of money in the future due to factors such as inflation and earning potential. When planning for long-term goals, such as retirement or saving for a child's education, it is important to consider the time value of money in order to accurately calculate how much money should be saved or invested in order to achieve those goals.

Using Time Value of Money Is Important When Planning for Long-Term