Does the explanation make sense to you

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Problem

A personal example of the time value of money in my life was when I chose to leave my job to pursue a career in nursing and go back to school. At the time, my weekly paycheck would have greatly helped our family with everyday costs and bills, but the license I was pursuing would provide much greater rewards in the future. The weekly paycheck that I chose to give up was my opportunity cost. However, the long-term benefits of furthering my education outweighed the opportunity cost at the time. Get the instant assignment help.

When considering the time value of money, it reminds me of fresh-baked goods. They are at their freshest if you consume them right after they are baked, rather than waiting until later and risking them going bad. This is true for money a well. If you have a dollar today, it is better to spend it today because in the future you will more than likely not be able to get nearly as much for that same dollar.

Does the explanation make sense to you? Why or why not?

Reference no: EM133925388

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