Question

The time value of money ________. ANSWER represents the installments of an investment that occur only at the end of each period. explains why a manager may prefer to receive cash sooner or later and also depends on the key factors of the principal amount (p), the number of periods (n), and interest rate (i). is the amount of interest an investment may earn and is computed by adding the principal amount of an investment plus the amount of interest earned on an investment. is interest computed only on the principal amount of the investment. I DON'T KNOW YET

Answer 1

Answer: The correct answer is "explains why a manager may prefer to receive cash sooner or later and also depends on the key factors of the principal amount (p), the number of periods (n), and interest rate (i).".

Explanation: The time value of money explains why a manager may prefer to receive cash sooner or later and also depends on the key factors of the principal amount (p), the number of periods (n), and interest rate (i).

A unit of currency is not worth the same today, than tomorrow, for its free availability and inflation.

The reason why it changes is that money can be invested by whoever has it in their power to earn an interest rate.