How Long Before a Future Payment of $1,000 Would a Payment

question 192

Short Answer

How long before a future payment of $1,000 would a payment of just $100 be an economically equivalent alternative? Round your answer to the nearest month. Assume money can earn 4.8% compounded semiannually.

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Definitions:

North America

A continent located in the northern hemisphere and almost entirely in the western hemisphere, encompassing countries such as the United States, Canada, and Mexico.

Pollution Prevention Pays

A principle that emphasizes the economic benefits of reducing or eliminating waste and pollutant production at the source, rather than dealing with their consequences later.

3M Company

An American multinational conglomerate known for its range of products including adhesives, abrasives, and laminates.

Low-Waste Approach

A strategy or lifestyle choice focusing on reducing the amount of waste generated by adopting practices like reusing, recycling, and choosing products that are made to last.