A Judge Requires Harry to Make a Payment to Sally

question 105

Multiple Choice

A judge requires Harry to make a payment to Sally.The judge says that Harry can pay her either $10,000 today or $12,000 two years from today.Of the following interest rates,which is the highest one at which Harry would be better off paying the money today?

• A)4 percent
• B)6 percent
• C)9 percent
• D)11 percent

---

Definitions:

Cesare Becarria

was an 18th-century Italian criminologist, jurist, and philosopher who is best known for his treatise "On Crimes and Punishments," advocating for criminal justice reforms.

Jeremy Bentham

An English philosopher and legal theorist known for founding the philosophy of utilitarianism, emphasizing the greatest happiness principle.

John Locke

A 17th-century British philosopher known for his works on liberalism, political theory, and his ideas about natural rights and government.

Unpleasantness

The quality of being disagreeable or difficult to endure, often used to describe undesirable experiences or sensations.