You Have Been Promised a Payment of $100,000 in the Future.In

question 164

Multiple Choice

You have been promised a payment of $100,000 in the future.In which case is the present value of this future payment highest?

• A)You receive the payment 2 years from now and the interest rate is 6 percent.
• B)You receive the payment 2 years from now and the interest rate is 4 percent.
• C)You receive the payment 3 years from now and the interest rate is 6 percent.
• D)You receive the payment 3 years from now and the interest rate is 4 percent.

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