The conversation between human and AI assistant.
Why is a given amount of money today worth more than the same amount in the future?
I see. Does the interest rate also have an impact on the value of money over time?
Yes, the interest rate can also affect the value of money over time. When interest rates are higher, money can earn more interest over time, so the future value of the money increases. On the other hand, when interest rates are lower, the future value of the money decreases because it earns less interest.