Suppose You Have Two Clients Who Need Your Services for Two

question 108

Essay

Suppose you have two clients who need your services for two years.One agreed to pay you $50,000 one year from now and another $50,000 in two years while the other paid $35,000 after one year,but $65,000 after two years.Assuming an interest rate of 10%,which one has a higher present value? Round off to the nearest dollar.

---

Definitions:

Paradigm

A distinct set of concepts, thought patterns, or methods that forms a framework for understanding, interpreting, or exploring complex phenomena.

Implicitly

In a manner that is understood or implied without being directly stated or expressed.

Group Dynamics

The study of groups and their development, structure, and interaction patterns, influencing the behavior and performance of individuals within the group.

Individualistic Perspective

A viewpoint emphasizing the importance and value of the individual, often at the expense of community or collective considerations.