Multiple Choice Question

Which one of these examples best illustrates the definition of time value of money?

A gift of $$10,000$ to be received in two years is worth $$8,900$ today.

You have $$4,500$ saved while your sister has $$5,600$ saved.

A new convertible that you would like to buy costs $$36,800$ today.

Your grandmother promised to give you $$15,000$ upon your graduation from college.