Suppose the highest return you can receive on your money is a 6 percent rate of interest

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Suppose the highest return you can receive on your money is a 6 percent rate of interest from your bank. That interest is paid in one lump sum at the end of each year for amounts deposited for the entire year. Which of the following options would provide you with the most money one year from now? Which option would provide you with the least money one year from now?

a. Receiving $100 today that you can deposit in your bank

b. Receiving $104 one year from now

c. Receiving $50 today that you can deposit, and $52 one year from now

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Survey Of Economics

ISBN: 9781429259569

1st Edition

Authors: David A. Anderson

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