The time value of money states that a dollar today is worth more than a dollar tomorrow.
✓ TRUE FACT
A dollar today can be invested to earn a return, so its “present value” is higher than the same dollar received later. For example, at 5% annual discount rate, $100 received in 1 year is worth about $95.24 today (100/1.05).
🤯 "The time value of money states that a dollar today is worth more than a dollar tomorrow. Mostly because you’ll already have spent it."