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Explain the importance of present value of money

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Question - Explain the importance of "time value of money "Would you rather receive $100 today or $120 in two years? Assume a risk free available interest rate of 10% calculated annually. Show your work.

Explain the importance of "present value of money".

What is the present value of $110 one year from now if you can get an annual risk free interest rate of 5%? Show your work.

Would you rather have $100 today, $110 in one year or $120 in two years if the annual risk free interest rate available is 9%. Show your work.

Reference no: EM133057506

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