John Says That the Future Value of $250 Saved for One

question 99

Multiple Choice

John says that the future value of $250 saved for one year at 6 percent is less than the future value of $250 saved for two years at 3 percent.George says that the present value of a $250 payment in one year when the interest rate is 6 percent is less than the value of a $250 payment in two years when the interest rate is 3 percent.

• A)John and George are both correct.
• B)John and George are both incorrect.
• C)Only John is correct.
• D)Only George is correct.

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