nadia is going to receive $1,000 from her grandparents next year. according to the time value of money, the gift of $1,000 is worth a gift of $1,000 if she received it today. less than more than the same as twice as much as

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21-10-2022
Business

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nadia is going to receive $1,000 from her grandparents next year. according to the time value of money, the gift of $1,000 is worth a gift of $1,000 if she received it today. less than more than the same as twice as much as

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shomerajeshwari90 shomerajeshwari90 · Answer 1 · 2022-10-30T02:41:15-04:00

The worth of $1,000 gift that Nadia is going to receive next year will be less than current value because as per time value of money current money has more worth than same money in future.

The idea of the time value of money (TVM) states that a monetary amount is valuable more now than it would be at a later point in time owing to its potential for earnings in the meantime. A fundamental idea in finance is the time value of money. Amount of money in your possession is considerably more valuable than a similar sum that will be delivered in the future. The discounted present value is another name for the time value of money.

Therefore, the value of gift will be less than $1000, if she is going to receive the same gift worth $1,000, in future due to the concept of time value of money.

The complete question is here:

Nadia is going to receive $1,000 from her grandparents next year. according to the time value of money, the gift of $1,000 is worth a gift of $1,000 if she received it today

twice as much as
less than
more than
the same as

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