A present sum of money is equivalent to the future sum or series of future sums at a specified interest rate. Group of answer choices True False

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Social Studies

Joy Curry

4 June, 07:59

A present sum of money is equivalent to the future sum or series of future sums at a specified interest rate. Group of answer choices True False

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Answers (1)

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Nathanial Rich · Answer 1

False

Explanation:

The present value of money concepts show that money changes in value with time (tume value of money). Therefore the present value of money today is the discounted value of future cash flows or "series" of cash flows. This shows that money decreases value with time and the present value of money today is not "equivalent" or greater than money in the future as a result of inflation or some annual rate of return not utilized.