Asked by Ahmed Dabour on Jun 29, 2024
Verified
The further in the future a payment is received, the more it is worth today.
Future Payment
A monetary payment that is agreed to be paid at a future date, rather than at the current time.
Payment Worth
The value or purchasing power of a payment in terms of goods or services that can be acquired with it.
- Understand the basic concept of interest rates and how they are calculated.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
False
Explanation :
The further in the future a payment is received, the less it is worth today due to the time value of money, which accounts for the preference of receiving money now rather than later.
Learning Objectives
- Understand the basic concept of interest rates and how they are calculated.