In Chapter 1,Principle 3 espouses the time value of money.Why is this principle so important to financial planning?
A)The principle allows us to determine how much money we will need to achieve our future goals.
B)The principle shows us how inflation impacts our money over time.
C)The principle helps us determine our savings needs today,in order to meet our future retirement goals.
D)The principle shows us how important time and interest rates are to the accumulation of wealth.
E)All of the above.

Question

Quizplus · Accepted Answer

The time value of money is a crucial concept in financial planning because it helps individuals determine how much money they will need to reach their future goals. Additionally, by understanding how inflation impacts the value of money over time, individuals can make informed decisions about investing and saving. This principle also helps individuals determine their current savings needs to meet future retirement goals. Finally, the time value of money demonstrates the importance of time and interest rates in accumulating wealth. All of these factors are critical to sound financial planning.

In Chapter 1,Principle 3 Espouses the Time Value of Money