A dollar today is worth more than a dollar to be received in the future because
A) risk of nonpayment in the future.
B) the dollar can be invested today and earn interest.
C) inflation will reduce purchasing power of a future dollar.
D) None of these.

Question

Quizplus · Accepted Answer

A dollar today can be invested to earn interest, increasing its future value, making it worth more than a dollar received in the future.

A Dollar Today Is Worth More Than a Dollar to Be