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#reading-6-time-value-of-money

Question

Why is money worth more today than in the future?

Answer

This is because the $1 today can be invested to earn interest immediately.

Tags

#reading-6-time-value-of-money

Question

Why is money worth more today than in the future?

Answer

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Tags

#reading-6-time-value-of-money

Question

Why is money worth more today than in the future?

Answer

This is because the $1 today can be invested to earn interest immediately.

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**Subject 1 Time Value of Money and Interest Rates**

The time value of money (TVM) refers to the fact that $1 today is worth more than $1 in the future. This is because the $1 today can be invested to earn interest immediately. The TVM reflects the relationship between present value, future value, time, and interest rate. The time value of money underlies rates of return, interest rates, required rates of retu

The time value of money (TVM) refers to the fact that $1 today is worth more than $1 in the future. This is because the $1 today can be invested to earn interest immediately. The TVM reflects the relationship between present value, future value, time, and interest rate. The time value of money underlies rates of return, interest rates, required rates of retu

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
---|---|---|---|---|---|---|---|

repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

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