Ask Question
21 August, 12:07

This principle suggests that a certain amount of money today has different buying power than the same amount of money in the future. This is due to both the opportunity to earn interest on the money and because inflation will drive prices up, thereby changing the ʺvalueʺ of the money.

+4
Answers (1)
  1. 21 August, 15:51
    0
    Time value of money

    Explanation:

    This principle states that money is more valuable at the moment or present than same amount of money in the future due its potential for increase in profit. A person or an investor that wants to make a return or gain will prefer to have the money now than have the same amount of money in the future. This is due to the potential of the money to increase in terms of earning capacity.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “This principle suggests that a certain amount of money today has different buying power than the same amount of money in the future. This ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers