Time Value Of Money: Future Value, Present Value, And Interest Rates
Money is worth more in the present than in the future because there’s an opportunity cost to waiting for it. ...
In addition to your loss of use if you don’t get your hands on it right away, there’s also inflation gradually eroding its value and purchasing power. If you’re going to part with your money for any period of time, you probably expect a larger sum returned to you than you started with.