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Your brother has offered to give you either $5,000 today or $10,000 in 10 years. If the interest rate is 7% per year, which option
Your brother has offered to give you either $5,000 today or $10,000 in 10 years. If the interest rate is 7% per year, which option is preferable? The present value of the future amount (amount received in 10 years) is $ . (Round to the nearest dollar.) Which option is preferable? (Select the best choice below.) O A. Take the present amount offered because it is less than the future amount. B. Take the future amount because it is greater than the amount offered today. O C. Take the present amount offered because it is greater than the present value of the future amount O D. Take the future amount because it is twice as much as the amount offered today in present value terms
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