Imagine that someone offers you $X today or $1,500 in 5 years. If the interest rate is 6 percent, then you would prefer to take the $X today if and only if
A)X 1,055.56.
B)X 1,120.89.
C)X 1,213.33.
D)X 1,338.26.

Question

Imagine that someone offers you $X today or $1,500 in 5 years. If the interest rate is 6 percent, then you would prefer to take the $X today if and only if
A)X > 1,055.56.
B)X > 1,120.89.
C)X > 1,213.33.
D)X > 1,338.26.

Quizplus · Accepted Answer

The Answer of Imagine that someone offers you $X today or $1,500 in 5 years. If the interest rate is 6 percent, then you would prefer to take the $X today if and only if
A)X > 1,055.56.
B)X > 1,120.89.
C)X > 1,213.33.
D)X > 1,338.26.

Imagine That Someone Offers You $X Today or $1,500 in 5