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Your brother has offered to give you either $ 4 0 , 0 0 0 today or $ 8 0 , 0 0 0 in
Your brother has offered to give you either $ today or $ in years. If the interest rate is per year, which option is preferable?
The present value of the future amount amount received in years is $
Round to the nearest dollar.
Which option is preferable? Select the best choice below.
A Take the present amount offered because it is less than the future amount.
B Take the present amount offered because it is greater than the present value
C Take the future amount because it is greater than the amount offered today.
D Take the future amount because it is twice as much as the amount offered today in present value terms.
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