If money were valued in terms of how many minutes a person needs to work to buy a dollar, an increase in the number of minutes of work needed would be an increase in the price of money.
A person needs to work for 2 minutes to buy a dollar. If there is an increase in the number of minutes of work needed, say to 3 minutes to buy a dollar, then the price of money (dollar) has increased or it has appreciated.
The time value of money (TVM) is the idea that an amount of cash is worth more now than a similar aggregate and will be sometime not too far off because of its profit possible in the meantime. The time worth of cash is a central guideline of money. A sum of cash in the hand has more prominent worth than a similar aggregate to be paid from here on out. The time worth of cash is likewise alluded to as the present limited esteem.
To learn more about finance and economics,
https://brainly.com/question/10024737
#SPJ4
