You Have Been Promised a Payment of $400 in the Future.In

question 202

Multiple Choice

You have been promised a payment of $400 in the future.In which of the following cases is the present value of this payment the lowest?

• A)You receive the payment 4 years from now and the interest rate is 4 percent.
• B)You receive the payment 4 years from now and the interest rate is 5 percent.
• C)You receive the payment 5 years from now and the interest rate is 4 percent.
• D)You receive the payment 5 years from now and the interest rate is 5 percent.

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