Which of the following statements best illustrates the time-value of money concept?
A. Bob is willing to forgo receiving $100 today in order to receive $110 next month.
B. Tom is indifferent between receiving $50 now and receiving $50 six months from now.
C. Terry works for an hourly wage instead of a fixed salary.
D. Jeff would prefer to receive $200 at the end of the year instead of $220 now.
Answer: A
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A) likely; likely B) likely not; not likely C) likely; not likely D) likely not; likely
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a. True b. False