Public discovery of the concept of time value of money with economic value of time

Abstract

Purpose - The purpose of this research is to know the public discovery of the concept of time value of money with economic value of time. Design/Methodology/Approach - The method of research involved a causal research design in North Sumatera Province, Indonesia. The data used are primary data sourced from questionnaires distributed to 112 random respondents. Data were analyzed using the SEM method with Smart PLS software. Findings - The results show that the public do not know exactly the application and the concept of “time value of money” and the economic value of time. Research Limitations/Implications - The limitation of this study is that it was conducted on heterogeneous Medan city samples and did not extend to other cities in North Sumatra with large samples. The study has implications on the socialization of the community’s understanding of the concept of time value of money with the economic value of time. Originality/Value - This study has value in that it compares the understanding of the society over the concept model of time value of money and the economic value of time.