If Inflation and the interest rate were both zero, would there still be a time value of money? Stated another way, if interest rates (and other investments) and inflation were both 0%, would you be indifferent between your boss paying you at the end of the week, or in 20 years? I believe that all of you would rather receive the same dollars earlier rather than later, so, any other suggestions on WHY there is a time value of money

If Inflation and the interest rate were both zero, would there still be a time value of money? Stated another way, if interest rates (and other investments) and inflation were both 0%, would you be indifferent between your boss paying you at the end of the week, or in 20 years? I believe that all of you would rather receive the same dollars earlier rather than later, so, any other suggestions on WHY there is a time value of money

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates

Section: Chapter Questions

Problem 2SBD

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If Inflation and the interest rate were both zero, would there still be a time value of money?

Stated another way, if interest rates (and other investments) and inflation were both 0%, would you be indifferent between your boss paying you at the end of the week, or in 20 years?
I believe that all of you would rather receive the same dollars earlier rather than later, so, any other suggestions on WHY there is a time value of money?

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