All else equal, a dollar received sooner is worth more than a dollar received at some later date, because the sooner the dollar is received the more quickly it can be invested to earn a positive return. True False

True

Explanation:

The time value of money involves the relationship of equivalence between cash flows occurring at  different dates.

The later a cash flow is received the less worthier it is as cash flow received earlier than that can be invested to earn return coupled with the fact that the later a cash flow is expected the higher the chances that there would a default on the party of the person making the cash available.

This uncertainty then makes a dollar received sooner worth more than the one received at some later time.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20