Question
Which of the following has the highest value if you can earn a 7% rate of return on your investments? $6,000 today $10,000 six years
Which of the following has the highest value if you can earn a 7% rate of return on your investments?
- $6,000 today
- $10,000 six years from today
- $1,000 per year for 9 years
Group of answer choices:
-$10,000 six years from today
-$6,000 today
-$1,000 per year for 9 years
-Cannot determine the highest value as the amounts differ and the timing differs
-All three have equal value
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Introduction To Finance Financial Management And Investment Management
Authors: Pamela P. Drake, Frank J. Fabozzi, Francesco A. Fabozzi
1st Edition
9811239657, 978-9811239656
