If you are promised $10,000 a few years from now,typically you would receive less than $10,000 is you demanded it be paid immediately.

Question

Quizplus · Accepted Answer

This is because of the time value of money and the concept of interest. The value of money changes over time due to inflation and the potential to earn interest, meaning that receiving the $10,000 immediately would not take into account these factors and therefore would be worth less than $10,000 in the future.

If You Are Promised $10,000 a Few Years from Now,typically