I would rather receive the $$100$ dollar today than getting it one year later or get $$105$ a year from today. $$The reason is that because the time value of money applies here, that is a $$1$ today is worth more than a $$1$ tomorrow. This is true as I can take the $$100$ today and invest it$.$ Also the reason that I did not take $$105$ a year from today is I can $$use the $$100$ for something useful or invest it and earn more interest than receiving $$5$dollar interset.