The value of money to be received in the future is______ the value of the same amount of money in hand today?
Answers
Explanation:
Future value is the value of an asset at a specific date. It measures the nominal future sum of money that a given sum of money is "worth" at a specified time in the future assuming a certain interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function.
Answer:
The complete sentence is: The value of money to be received in the future is higher than the value of the same amount of money in hand today.
Explanation:
The Time Value of Money is a key notion that proves that money is worth more today than it will be in the future. The value of idle cash that we have today is lower than it was yesterday, last month or last year. Today's money can be put to good use.
It is the idea that a sum of money is worth more now than it will be at a later point due to the possibility for earnings in the interval. This is a fundamental financial principle.
It is a financial principle that argues that the current value of a dollar is greater than the future value of a dollar. This theory is valid because money can be invested today and grow into a larger sum in the future.
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