Time Value of Money Quiz for CA Foundation Students

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ToughToucan
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3 Questions

What is the concept that states the value of money today is worth more than the same amount in the future due to its potential earning capacity?

Present value of money

Which factor is used to calculate the future value of an investment?

Interest rate

What concept refers to the idea that a dollar today is worth more than a dollar in the future due to its potential earning capacity?

Time value of money

Test your knowledge of the time value of money with this quiz designed for CA Foundation students. Explore the concept that highlights the greater worth of money today compared to the same amount in the future. Get familiar with the factors used to calculate future investment value and grasp the idea that a dollar today holds more value than a dollar in the future due to its potential earning capacity.

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