Would you rather receive $1,000 a year for 10 years or $800 a year for 15...

Would you rather receive $1,000 a year for 10 years or $800 a year for 15 years if:

Present Value = FV after t periods / (1+r)^t

The interest rate is 5 percent?

Response and rationale:

Present value = PV = future value /

The interest rate is 20 percent?

Response and rationale:

Why do your answers to “(a)” and “(b”) differ?

Response:

Solutions

Expert Solution

jeff jeffy answered 1 year ago

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