which of the following is an example of the time value of money?\na program of benefits for employees.\nthe…

which of the following is an example of the time value of money?\na program of benefits for employees.\nthe risk associated with the purchase of speculative stocks.\nthe result of interest compounding on savings.\na plan to diversify investments.

which of the following is an example of the time value of money?\na program of benefits for employees.\nthe risk associated with the purchase of speculative stocks.\nthe result of interest compounding on savings.\na plan to diversify investments.

Answer

Brief Explanations:

The time - value of money concept states that a sum of money is worth more now than the same sum in the future due to its potential earning capacity. Interest compounding on savings is an example as it shows how money saved now can grow over time. Employee benefits are not related to the time - value of money concept. The risk of speculative stocks is about investment risk, not time - value of money. Diversifying investments is about spreading risk, not time - value of money.

Answer:

The result of interest compounding on savings.