What is the present value of $100 one year from now if the interest rate is 10%? What is the present value if the interest rate is 5%? Which one do you like: to have it today or wait for 1 year in the future. Why do you like it today/in 1 year?

What is the present value of $100 one year from now if the interest rate is 10%? What is the present value if the interest rate is 5%? Which one do you like: to have it today or wait for 1 year in the future. Why do you like it today/in 1 year?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter16: Interest, Rent, And Profit

Section: Chapter Questions

Problem 1WNG

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