Question
You are offered $80,000 today or $340,000 in 12 years. Assuming that you can earn 16 percent on your money, which should you choose? a.
You are offered $80,000 today or $340,000 in 12 years. Assuming that you can earn 16 percent on your money, which should you choose?
a. If you are offered $340,000 in 12 years and you can earn 16 percent on your money, what is the present value of $340,000?
b. Should you chose $80,000 today or $340,000 in 12 years?
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Economics Of Money Banking And Financial Markets
Authors: Frederic Mishkin
5th Edition
0134734203, 978-0134734200
