The principle that a dollar is worth more the sooner it is to be received is the:
A)value principle.
B)value of money principle.
C)time value of money principle.
D)Fisher effect.

Question

Quizplus · Accepted Answer

The principle that a dollar is worth more the sooner it is to be received is known as the time value of money principle. This principle recognizes the fact that the value of money changes over time due to various factors such as inflation, interest rates, and opportunity cost. The time value of money is an important concept in finance and is used in many financial calculations such as determining the future value of an investment, calculating loan payments, and evaluating the profitability of a business project.

The Principle That a Dollar Is Worth More the Sooner