Recently, some businesses have been saying things like "Come try our product. If you do, we'll give you $100 just for coming by!" If you read the fine print, what you find out is that they will give you a savings certificate that will pay you $100 in 25 years. If the going interest rate on such certificates is 10% per year, how much are they really giving you today?

What you're actually getting is the present value of $100 to be paid in 25 years. If the discount rate is 10% per year, then the discount factor is 1/(1.1)25 = .0923

Your discussion post should answer the following:

What is the present value of the $100 promotion, if the discount rate is 10%?

Is this deceptive advertising?

Is it unethical to advertise a future value like this without a disclaimer?