A payment of $10,000 is to be made in the future. The interest rate 3%. Is this payment worth more if it is paid in 5 years or 10 years? How much more is it worth?
It is worth more if it is received in 5 years. It's worth about $8626.09 if it is paid in 5 years and $7440.94 if it is paid in ten years. So, its worth about $1185.15 more if its paid in 5 years rather than 10.
Economics
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