A dollar in the present day is worth less than that of the dollar in the future, because of returns generated over reinvestment.
What is reinvestment?
A process of investing something, which is invested more than once after generating returns over it, is known as a reinvestment. A currency is the most widely reinvested class of asset, and generally its value appreciates.
Hence, the significance of reinvestment is given above.
Learn more about reinvestment here:
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