Multiple Choice
In which of the following instances is the present value of the future payment the largest?
A) You will receive $1,000 in 5 years and the annual interest rate is 5 percent.
B) You will receive $1,000 in 10 years and the annual interest rate is 3 percent.
C) You will receive $2,000 in 10 years and the annual interest rate is 10 percent.
D) You will receive $2,400 in 15 years and the annual interest rate is 8 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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