Answer: a dollar received today is worth more than dollar to be received in the future
Explanation:
The time value of money also referred to as the present discounted value is the concept which explains that an identical amount of money presently available is of more worth now than in the future. This important principle in finance holds that since interest can be gotten from money, an amount of money is of more value as soon as it is received. It is based on the principle that people would like to have money today than later in the future.
For example, if a person has the option of choosing between having $5000 presently or getting the $5000 in three years, most people will choose to collect the $5000 today rather than waiting for three years.
