The time value of money suggests that $1 in one year is worth less than $1 today.

Name: The time value of money suggests that $1 in one year is worth less than $1 today.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The 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 inflation and the opportunity cost of not having that money available for investing or spending now. Therefore, $1 in the future is worth less than $1 today.

The Time Value of Money Suggests That $1 in One