If Inflation and the interest rate were both zero, would there still be a time value of money? Stated another way, if interest rates (and other investments) and inflation were both 0%, would you be indifferent between your boss paying you at the end of the week, or in 20 years? I believe that all of you would rather receive the same dollars earlier rather than later, so, any other suggestions on WHY there is a time value of money
If Inflation and the interest rate were both zero, would there still be a time value of money? Stated another way, if interest rates (and other investments) and inflation were both 0%, would you be indifferent between your boss paying you at the end of the week, or in 20 years? I believe that all of you would rather receive the same dollars earlier rather than later, so, any other suggestions on WHY there is a time value of money
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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If Inflation and the interest rate were both zero, would there still be a time value of money ?
Stated another way, if interest rates (and other investments) and inflation were both 0%, would you be indifferent between your boss paying you at the end of the week, or in 20 years?
I believe that all of you would rather receive the same dollars earlier rather than later, so, any other suggestions on WHY there is a time value of money?
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