A Wealthy Relative Promises to Give You $5000 When You

Multiple Choice

A wealthy relative promises to give you $5000 when you complete all of the college courses needed to earn a degree in business. What must the present value of this future sum be?

A) It must be less than $5000, but the exact value depends on how long it takes you to earn your degree and the rate of interest you can earn on investments.
B) It must be less than $5000, but the exact value depends on how long it takes you to earn your degree and the exchange rate for the dollar.
C) It must be more than $5000, but the exact value depends on the exchange rate for the dollar and the rate of interest you could earn on investments.
D) It must be more than $5000, but the exact value depends on how long it takes you to earn your degree and the rate of interest you can earn on investments.