Unformatted text preview: Assume that the interest rate is 10%. Would you prefer to receive: $?9 one year from now, 594 Mo years from now, or $104 three years
from now? a" A. 3104 three years from now.
B. $94 two years from now. C. 379 one year from now.
D. These choices are equally preferable. Would your answer change if the interest rate was 20%?
A. No, the best choice is still $104 to be received in three years. B. Yes, the preferred choice is now $94 to be received in two years.
-'~"C. Yes, the preferred choice is now $79 to be received in one year. ...
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- Fall '19
- best choice, preferred choice