Based on the present level of learning, Discuss with an example why a Dollar today is worth more than a dollar in the future? Guidelines and deadlines to follow for discussion:- - Your response should be a minimum of 5 sentences but should not exceed 250 words

The value of dollar today is worth more than the similar value of dollar in future because of the concept of the time value of money which advocates that the present value of a similar sum of money will be higher than the future value of that particular sum because there will be effect of depreciation of the value of money due to factors like inflation as with the time value the inflation is also rising, and it will mean that the value of money and the disposable value of money will be decreasing.

The value of dollar today is reflecting that the value of Dollar is higher than the future value of similar amount of dollar as in the future with the increase of the time there will be higher amount of depreciation charged on the money due to factors of inflation because the similar amount of money will be able to buy lower value of products in future than in present and hence the time value of money factor will be coming into which will be leading into lower amount of buying and purchasing capability of money so the present value of money will be higher than the future value of similar amount of money.

This is a vital concept in the field of finance which is reflecting the preference of company to accept the receivables at the present rather than in the future.