You have been promised a payment of $100,000 in the future. In which case is the present value of this future payment highest?
a. You receive the payment 2 years from now and the interest rate is 6 percent.
b. You receive the payment 2 years from now and the interest rate is 4 percent.
c. You receive the payment 3 years from now and the interest rate is 6 percent.
d. You receive the payment 3 years from now and the interest rate is 4 percent.
b
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When Starbucks accepts your $10 bill for two Grande Lattes and one Tall Caramel Macchiato, the $10 bill serves as a
A) medium of exchange. B) store of value. C) standard of value. D) commodity money.
The production possibilities frontier bows outward because
A) opportunity costs are decreasing as the production of a good increases. B) opportunity costs are increasing as the production of a good increases. C) opportunity costs are fixed as the production of a good increases. D) resources are of uniform quality.