The concept that a dollar received today is worth more than a dollar received tomorrow is referred to as the:
A) Present value.
B) Simple interest value.
C) Compound value.
D) Time value of money.
E) Future value of money.

Question

Quizplus · Accepted Answer

The concept that a dollar received today is worth more than a dollar received tomorrow is referred to as the Time value of money. This principle highlights the preference for receiving money now rather than later, due to potential earning capacity.

The Concept That a Dollar Received Today Is Worth More