If You Are Faced with the Choice of Receiving $500

question 99

True/False

If you are faced with the choice of receiving $500 today or $800 6 years from today, you will be indifferent between the two possibilities if the interest rate is 8.148 percent.

---

Definitions:

Negative Consequence

An unfavorable outcome or penalty that results from an action or condition.

College Students

Individuals enrolled in higher education institutions, often pursuing undergraduate or graduate degrees.

Binge-Drinking

The consumption of an excessive amount of alcohol in a short period of time, typically defined as five or more drinks for men, and four or more for women, in about two hours.

Negative Consequence

An unpleasant outcome resulting from an action, which is often used as a form of punishment or deterrent.