The time value of money concept can be defined as:
A)the relationship between the supply and demand of money.
B)the relationship between money spent versus money received.
C)the relationship between a dollar to be received in the future and a dollar today.
D)the relationship between interest rate stated and amount paid.
E)None of the above.

Question

Quizplus · Accepted Answer

The time value of money concept is the relationship between a dollar to be received in the future and a dollar today. It is based on the notion that a dollar today is worth more than a dollar received in the future because of the potential to earn interest or investment returns. This concept is used widely in finance and is important for financial decision-making.

The Time Value of Money Concept Can Be Defined As