The Value of $1 Today Is Worth More Than $1

question 73

True/False

The value of $1 today is worth more than $1 one year from now.

---

Definitions:

Scholarships

Financial support awarded to students based on academic or other achievements to help fund their education.

Trust Fund

A fund comprised of a variety of assets intended to provide benefits to an individual or organization, managed by a trustee.

Compounded Annually

Refers to the process of calculating interest on an investment or loan once per year, adding it to the principal amount.

Perpetuity

An annuity that pays a fixed amount of money indefinitely.