Question: What are the causes of the time value of money? In other words, why would you prefer to receive $100 today rather than wait and

What are the causes of the time value of money? In other words, why would you prefer to receive $100 today rather than wait and receive $100 one year from now?

list all the potential explanations you can think of for the time value of money. For each cause, sentence or two about how it explains your preference for money today rather than money at some future date.

imagine that I promise to pay you either $100 today or some different amount of money one year from now. How much would I have to promise to pay you in one year for you to choose to forego the $100 today and wait one year for the cash? Explain how you came up with the value you would need to receive in order to choose to wait.

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