Which has a higher present value: (a) $100 in 10 years when the interest rate is 2

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Which has a higher present value:

(a) $100 in 10 years when the interest rate is 2 percent,

(b) $100 in 3 years when the interest rate is 8 percent?

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Microeconomics

ISBN: 9780077641542

11th Edition

Authors: Stephen Slavin

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Question Posted: Mar 01, 2024 11:00 PM

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Which has a higher present value: (a) $100 in 10 years when the interest rate is 2

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To determine which option has a higher present value we need to calculate the present value of each ...View the full answer

Microeconomics

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