The time value of money means that a rupee received today is generally:
Correct answer: C. Worth more than a rupee received later
- A. Worth less than a rupee received later
- B. Worth equal to every future rupee
- C. Worth more than a rupee received later
- D. Unaffected by the rate of interest
Explanation
A rupee received today can be invested and earn a return, so it is normally more valuable than the same rupee received later. This principle underlies discounting and present value calculations.
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