You have 2 options to receive payments:

Option A: You will receive $100 in 2 years.

Option B: You will receive $100 in 3 years.

If the discount rate (interest rate) is greater than 0 which option will have higher present value as of today?

Group of answer choices

Option A

Option B

Both options will have equal PVs

not enough information to answer the question

You have 2 options to receive payments:

Option A: You will receive $100 in 2 years and $200 in 3 years.

Option B: You will receive $100 in 3 years and $200 in 4 years.

If the discount rate (interest rate) is greater than 0 which option will worth more in 5 years (in other words, which options will have higher Future value in year 5)?

Option A

Option B

Both options will have equal future values

not enough information to answer the question