Which of the following best explains the time value of money?
A) This concept explains how inflation works.
B) It means that it's best to have money today, so it can be put to work sooner to make even more money.
C) It refers to the calculation of an amount using compound interest.
D) This concept states that it is always more profitable when money is invested for a long term.

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, because it can be invested and grow over time. In other words, it's best to have money today so it can be put to work sooner to make even more money.

Which of the Following Best Explains the Time Value of Money