Vince says that the present value of $500 to be received one year from today if the interest rate is 8 percent is more than the present value of $500 to be received two years from today if the interest rate is 4 percent. Terri says that $500 saved for two years at an interest rate of 3 percent has a larger future value than $500 saved for one years at an interest rate of 6 percent
a. Both Vince and Terri are correct.
b. Only Vince is correct.
c. Only Terri is correct.
d. Neither Vince nor Terri is correct.
a
Economics
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If marginal benefit is greater than marginal cost, output is inefficiently high
Indicate whether the statement is true or false
Economics
The above figure shows the market for steel ingots. If the market is competitive, then the deadweight loss to society is
A) a. B) b. C) c. D) zero.
Economics