Which of the Following Best Explains the Time Value of Money

question 45

Multiple Choice

Which of the following best explains the time value of money?

• A)It is a concept that explains how inflation works.
• B)It means that it's best to have money today, so it can be put to work sooner to make even more money.
• C)It refers to the calculation of an amount using compound interest.
• D)It is a concept that states that long-term investments are more profitable than short-term investments.

---

Definitions:

Percent

A ratio or fraction out of 100 used to express quantities in fractions of a hundred.

Accurate

A term describing information or measurements that are correct, precise, and free of errors.

Cent

A form of money present in multiple countries, representing one one-hundredth of a decimal currency such as the dollar or euro.

Accurate

The quality of being correct in all details; exactness.