At an interest rate of 0%, $1.00 received in 10 years is equivalent to $1.00 received in 5 years.

Name: At an interest rate of 0%, $1.00 received in 10 years is equivalent to $1.00 received in 5 years.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

At an interest rate of 0%, the time value of money is ignored, so $1.00 received at any point in time is equivalent to $1.00 received at any other point in time. Therefore, $1.00 received in 10 years is equivalent to $1.00 received in 5 years, regardless of the interest rate.

At an Interest Rate of 0%, $1