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Dollar paid in the future is less valuable than a dollar paid today?
Wiki User
∙ 12y ago
Yep. that's the whole concept of interest.
Wiki User
∙ 12y ago
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3 A dollar today is worth more than a dollar to be received in the future because?
there are two reasons. 1. A dollar today can earn interest so you will have more than a dollar in the future. 2. Inflation will reduce the purchasing power a dollar over time, so it's better to get the dollar today and spend it today because it won't buy as much stuff tomorrow.
Does inflation have anything to do with making a dollar today?
If I understand your question correctly, when dealing with inflation, a dollar earned today is worth more than a dollar earned at any time in the future. This has to do with the concept of the present value of money. Because inflation devalues the dollar over time, a dollar earned today is worth more than say, a dollar earned five years from now.
What is cost of 1 dollar today?
Which is the price of dollar today
What is exchange rate today between US dollar and Australian dollar?
1 US dollar = 0,96877 Australian dollar ( official conversion, today 10.02.2013)
What is the buying power of a 1970 dollar compared to a dollar today?
It is the same. A dollar is a dollar no matter which year it was printed.
3 A dollar today is worth more than a dollar to be received in the future because?
there are two reasons. 1. A dollar today can earn interest so you will have more than a dollar in the future. 2. Inflation will reduce the purchasing power a dollar over time, so it's better to get the dollar today and spend it today because it won't buy as much stuff tomorrow.
Does inflation have anything to do with making a dollar today?
If I understand your question correctly, when dealing with inflation, a dollar earned today is worth more than a dollar earned at any time in the future. This has to do with the concept of the present value of money. Because inflation devalues the dollar over time, a dollar earned today is worth more than say, a dollar earned five years from now.
Why you need time value of money in analyzing fund flows?
Because a dollar received in the future is worth less to you than a dollar available to invest today. The further in the future you receive funds, the less is their value to you today.
What is cost of 1 dollar today?
Which is the price of dollar today
Is it commonly known that a dollar some period in the future is not worth the same as a dollar today?
Yes, this is VERY common knowledge - known as inflation. (or very rarely, deflation).
What is exchange rate today between US dollar and Australian dollar?
1 US dollar = 0,96877 Australian dollar ( official conversion, today 10.02.2013)
What is the buying power of a 1970 dollar compared to a dollar today?
It is the same. A dollar is a dollar no matter which year it was printed.
What is the comparison between the U.S dollar of 1821 compared to the U.S dollar today?
what would one dollar in 1821 be worth today
What was the buying power of a 1911 US dollar compared to a dollar today?
About $10,000 today
What was the value of a dollar in 1895?
One dollar, the same as today
What is the buying power of the 1998 US dollar compared to a dollar today?
The buying power of the US dollar has decreased somewhat since 1998. The value of a dollar in 1998 is equal to $1.46 today.
One dollar dated 1900 how much is it worth today?
a dollar
