Einstein on Wall Street, a Time-Money Continuum: Mark Buchanan
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July 28 (Bloomberg) -- What is the value of time? Thisquestion was once a matter for philosophers such as Plato orAristotle. Today economists claim to know the answer. Thefuture, they say, is “discounted” because the value of havingsomething or some amount of cash is greater than the value ofhaving that same thing or amount of money a year from now.
How much so? Well, if you can put $96 today into aninvestment earning 4 percent interest, it will be worth almost$100 in a year. So $100 a year from now is worth only $96 today.