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Suppose You Have Two Clients Who Need Your Services for Two

question 108

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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:

Knowledge

Facts, information, and skills acquired through experience or education; the theoretical or practical understanding of a subject.

Experience

The knowledge or mastery of an event or subject gained through involvement in or exposure to it.

Relationship

The way in which two or more people, groups, or countries interact and behave towards each other.

Sender

A person or group trying to communicate with someone else.

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