Answered: me value of money

Business

Accounting

me value of money

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which of the following statements about the time value of money is true?

a.) A dollar in hand today is worth less than a dollar to be received in the future.

b. ) The value of a dollar invested at a positive interest rate decreases over time.

c.) The further in the future you receive a dollar, the less it is worth today.

d.)The higher the rate of interest, the more likely an investor will elect to consume at present and forgo invest his funds.

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