Which Is More Valuable, Receiving $775 Today or Receiving $885

question 23

Multiple Choice

Which is more valuable, receiving $775 today or receiving $885 in 2.5 years if interest rates are 7.25 percent?

• A)Receiving $775 today
• B)Receiving $885 in 2.5 years
• C)They are worth the same amount
• D)Need more information to make a determination

---

Definitions:

Interest Rate Changes

Variations in the cost of borrowing or the return on savings that occur due to economic policy or market conditions.

Spreadsheet

A spreadsheet is a digital tool for organizing, analyzing, and storing data in tabular form, frequently used for financial planning, calculations, and record keeping.

Cash Flows

The aggregate value of cash entering and exiting a company, particularly influencing its liquid assets.

Statement Of Cash Flows

A financial statement that summarizes the cash inflows and outflows for a company, showing how its cash levels change over time.