If an Investor Had a Choice of Receiving $1,000 Today

question 1

Multiple Choice

If an investor had a choice of receiving $1,000 today or $1,000 in five years,which would the typical investor prefer?

• A)$1,000 in five years: is better to receive money later rather than sooner.
• B)$1,000 today: it will be worth more than $1,000 received in five years.
• C)$1,000 in five years: it will be worth more than $1,000 received today.
• D)Investors would be indifferent to when they would receive the $1,000.
• E)None of the above.

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Definitions:

Brady-

A prefix used in medical terms to denote slowness, as in bradycardia, which means slow heart rate.

Slow

Characterized by a low speed; not fast or quick.

Insomnia

A sleep disorder characterized by difficulties in falling asleep, staying asleep, or obtaining restorative sleep.

In-

A prefix used to indicate negation or absence.