Why does money have a time value?

Literature by Geoffrey

Lesson 3

* Why does money have a time value?

* Provide a real-world example of the application of Time Value of Money.

PROFESSOR’S GUIDANCE FOR THIS WEEK’S LE:

A dollar you receive today is worth more than the one you’d receive 20 years from now. This is a fundamental assumption/fact in finance and economics. There are justifications for this fact that we are trying to address here.

Be sure to proofread carefully (Use Grammarly – the premium version! Make sure your writing score is more than 90) and cite your sources (APA 7.0 ed).

NOTE:

  1. Post your 100-200 word answers by Wednesday 11:55 pm to earn a maximum of 14 points.
  2. Offer at least two 100-200 word comments (replies) to posts from your peers’ discussions by Sunday 11:55 pm to earn a maximum of 8 points each.