Reference no: EM133495853

Why should you be willing to invest in the promise of receiving a future payment? There are a few factors to consider:

1. Interest rates: If the potential return on the investment is higher than the interest rate you could earn by keeping your money in a savings account, it's generally considered a good investment opportunity, as it has the potential to grow your wealth at a faster pace.

2. Inflation: The value of money decreases over time due to inflation. Investing in a promising opportunity helps you grow your wealth at a rate that outpaces inflation, ensuring that your purchasing power is preserved or even increased in the future.

3. Risk: When investing in promises of future payments, there's always a level of risk involved. The risk, however, varies depending on who is making the promise. For instance, promises made by a well-established and financially stable company are generally perceived as less risky compared to those made by an unknown individual or a start-up with an unproven track record.