The correct answer is C. Time value of money.
Time value of money is the concept that money has different values depending on when it is received. A dollar today is worth more than a dollar tomorrow because you can invest the dollar today and earn interest on it.
The present worth factor is a factor that is used to calculate the present value of a future sum of money. The interest rate is the rate at which money is earned or paid over time. Yield is the return on an investment, expressed as a percentage.
Here is a simple example of how time value of money works. Let’s say you have $100 today. You can either invest it at a 5% interest rate for one year, or you can keep it in your savings account. If you invest it, you will have $105 at the end of the year. If you keep it in your savings account, you will still have $100 at the end of the year.
In this example, the time value of money is $5. This is the amount of money you would have earned by investing your money instead of keeping it in your savings account.
The time value of money is an important concept to understand when making financial decisions. It can help you to make better decisions about how to save and invest your money.