Question

For each of the following three scenarios, would you rather: a. Receive $100 in one month or $100 in two months (most people prefer the former)? b. Be given an excellent meal at a nice restaurant in one month or in two months (most people prefer the former)?

Answer 1

Answer:

I would Like to receive $100 in one month rather in two months.

I would like to take to take dinner in one month rather in two months.

Explanation:

Time value of money money describes that the amount now in hand is worth more rather having it after some time. All the money have potential earning capacity and it earn with the passage of time as time gone the earning will also lost. That is why it is better to receive money in one month rather in two months and have dinner in one month rather in two months.