When the inflation rate is zero, the present value of $1 is identical to the future value of $1.

Name: When the inflation rate is zero, the present value of $1 is identical to the future value of $1.
Brand: Quizplus
Rating: 4.9 (33 reviews)

Question

Quizplus · Accepted Answer

When the inflation rate is zero, the present value of $1 is not necessarily identical to the future value of $1 because the time value of money still applies, meaning $1 today is worth more than $1 in the future due to the potential earning capacity of money.

When the Inflation Rate Is Zero, the Present Value of $1