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Why is money today considered more valuable than money tomorrow?

"Money today can be invested and potentially grow in value."

"Money tomorrow is subject to inflation."

"Future economic conditions are uncertain."

"Spending habits may change in the future.

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What is the core financial concept that deals with comparing money across different time periods?

"Compound Interest"

"Risk Management"

"Time Value of Money"


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What does the Present Value of money help us understand?

"The future buying power of money"

"The potential return on investment"

"The value of future funds in today's terms"

"The impact of inflation on savings

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What is a suitable proxy for the risk-free rate in financial calculations?

"Corporate bonds"

"Stock market index"

"Government bonds"

"Inflation rate

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What is the key difference between the 'R' used in the Future Value formula and the 'R' used in the compound interest formula?

"There is no difference, they represent the same concept."

"Future Value 'R' represents risk, while compound interest 'R' represents return."

"Future Value 'R' represents opportunity cost, while compound interest 'R' represents growth rate."

"Future Value 'R' is a fixed rate, while compound interest 'R' can fluctuate.