Question: How does the element of time affect future and present value calculations?
- The element of time has no affect on future and present value calculations.
- The value of money increases over time in future value calculations; the value of money decreases over time in present value calculations.
- The value of money decreases over time in future value calculations; the value of money increases over time in present value calculations.
- The value of money increases over time in present value calculations; the value of money decreases over time in future value calculations.