Multiple Choice
You have been promised a payment of $400 in the future.In which case is the present value of this payment highest?
A) You receive the payment 4 years from now and the interest rate is 4 percent.
B) You receive the payment 4 years from now and the interest rate is 5 percent.
C) You receive the payment 5 years from now and the interest rate is 4 percent.
D) You receive the payment 5 years from now and the interest rate is 5 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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