When we say that the present value of $100 received in one year is $97.56, we are also saying that:
A)you prefer receiving $100 in the future to $97.56 today.
B)you prefer receiving $100 today to $100 in one year.
C)you are indifferent between receiving $100 in the future and $97.56 today.
D)you are indifferent between receiving $97.56 in the future and $100 today.

Question

Quizplus · Accepted Answer

The present value calculation implies that $97.56 today is equivalent to $100 in one year, meaning you are indifferent between the two amounts.

When We Say That the Present Value of $100 Received