A dollar today is worth more than a dollar to be received in the future. The difference between the presentvalue of cash flows and their future value represents the time value of money. Interest is the rent paid forthe use of money over time.
A dollar today is worth more than a dollar to be received in the future. The difference between the presentvalue of cash flows and their future value represents the time value of money. Interest is the rent paid forthe use of money over time.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 11QTD
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A dollar today is worth more than a dollar to be received in the future. The difference between the present
value of
the use of money over time.
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