$1000 today is worth more because it has greater purchasing power. Money available now can be invested to earn interest, growing to more than $1000 in the future.
Conditions: Assumes positive interest rates and/or inflation.; Comparison is between the same nominal amount at two different times.
$1000 today is worth more because it has greater purchasing power. Money available now can be invested to earn interest, growing to more than $1000 in the future.
Conditions: Assumes positive interest rates and/or inflation.; Comparison is between the same nominal amount at two different times.
Money is worth more now because of the time value of money. A dollar today can be invested to earn interest, growing to a larger amount in the future.
Conditions: Assumes positive interest rates or investment opportunities.; Assumes inflation or opportunity cost exists.; Comparison is between the same nominal amount at different times.
Money is worth more now because of the time value of money. A dollar today can be invested to earn interest, growing to a larger amount in the future.
Conditions: Assumes positive interest rates or investment opportunities.; Assumes inflation or opportunity cost exists.; Comparison is between the same nominal amount at different times.