The Great Homebody Nationwide Sweepstakes promises its winners a choice between $200, 000 now or $120, 000 now and $100, 000 next year.The winners should take the $200, 000 now
A) no matter what the interest rate is
B) no matter what the interest rate is, if their rate of time preference is high
C) no matter what the interest rate is, if their rate of time preference is low
D) only if the interest rate is above 25 percent
E) only if the interest rate is below 25 percent
Correct Answer:
Verified
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