Question
10:35 5G EVERFI Marketplaces: Investing Basics \( { }^{\text {m }} \) Quiz Question 2 of 5 Getting \$100 today is worth more than getting \$100 a year from now because... Select a response. time does not impact value. you don't know what can happen tomorrow. you can invest it now and it will start to grow. you don't have to wait to spend the money. Submit Continue \( \leftarrow \) Back Finish platform.everfi.net
Ask by King Reid. in the United States
Feb 22,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
You can invest the money now and it will start to grow.
Solution
The correct answer is: "you can invest it now and it will start to grow."
Explanation:
Money today has the potential to earn interest or returns through investments. By receiving $100 now, you can invest it and potentially have more than $100 in the future. This concept is the basis of the time value of money.
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Getting $100 today is worth more than getting $100 a year from now because you can invest it now and it will start to grow. The concept of time value of money tells us that money available now can be invested and earn returns, leading to a greater value in the future. So, that Benjamin has the potential to become a Benjamin and a half! Additionally, by investing that $100 today, you open the door to compound interest, where not only your initial amount grows but so does the interest earned on your past interest. It’s like planting a money tree—water it with wise investments, and watch it flourish over time!
