The time value of money means:
A) A dollar received today will be worth more than a dollar received in the future
B) A dollar received today will be worth less than a dollar received in the future
C) Ignoring the profitability of a capital investment
D) The more you invest, the smaller your return is

Question

Quizplus · Accepted Answer

The time value of money refers to the idea that money received today is worth more than the same amount of money received in the future, due to the potential to earn interest or returns on that money over time. Therefore, choice A is the correct option.

The Time Value of Money Means