You Are To Choose Between Receiving 909 00 Today Or 1 000 00 In 12 Months Time
You are to choose between receiving $909.00 today or $1,000.00 in 12 months’ time. Assuming an interest rate of 10% and rounding off to a whole dollar, should you be indifferent between the two options? Why or why not?What does this exercise tell you about the relationship between $1 today and $1 tomorrow?
You are to choose between receiving $909.00 today or $1,000.00 in 12 months’ time. Assuming an interest rate of 10% and rounding off to a whole dollar, should you be indifferent between the two…
