Home › US CMA Part 2 › Finance › Time Value of Money › The time value of money concerns the value of mo…
The time value of money concerns the value of money relative to the amount of:
ATime it is held
BSpace it fills
CWeight it carries
DPaper it uses
Answer & Solution
Correct answer: A. Time it is held
1. Money's worth is not fixed across time.
2. The time value of money is abbreviated TVM.
3. It is a critical concept in understanding the value of money.
4. That value is relative to the amount of time money is held, saved, or invested.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 7 'Time Value of Money I: Single Payment Value'_
Related questions
Working out today's worth of a house price six years from now is an example of:Reinvesting both the 1,000 dollar principal and the 40 dollars of interest means year two A friend with 1,000 dollars principal earning 40 dollars in year one has an interest rate Under the rule of 72, an investment growing at 6 percent a year doubles in roughly:Under the rule of 72, an investment growing at 8 percent a year doubles in roughly:The rule of 72 estimates the time required to do what to a value?Discounting is described as the exact opposite of which process?In the second-year example, the friend reinvests the principal together with the: