WROC Rochester First
CPA Jacqueline Tepfer of EFP Rotenberg discussed the cost of money Monday on News 8 at Sunrise. Tepfer said the cost of money is the opportunity cost of holding money instead of investing it, depending upon the rate of interest. It's further explained by the time value of money, the concept that a dollar in hand today is worth more than a dollar in hand in the future. The trade-off between money in the present and money in the future depends upon, among other things, the rate of interest you can earn by investing. Interest is the price you pay for using someone else's money according to Tepfer. You pay a rate for the opportunity to use money today that would otherwise take time for you to accumulate.