The principle that considers the value of compound interest is the ________ principle.
A)all risk is not equal
B)pay yourself first
C)competitive inflation adjustment
D)time value of money
E)none of the above

Question

Quizplus · Accepted Answer

The principle that considers the value of compound interest is the time value of money principle. This principle emphasizes that money available at the present time is worth more than the same amount in the future due to its potential to earn interest or be invested to generate more money over time. Thus, considering the time value of money is crucial when making financial decisions.

The Principle That Considers the Value of Compound Interest Is