How much more would you be willing to pay today for an investment offering $10,000 in 4 years rather than in 5 years? Your discount rate is 8%.
A) $544.47
B) $681.48
C) $740.74
D) $800.00

Name: How much more would you be willing to pay today for an investment offering $10,000 in 4 years rather than in 5 years? Your discount rate is 8%. A) $544.47 B) $681.48 C) $740.74 D) $800.00
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Difference = FV / (1 + r)^t⁻¹ − FV / (1 + r)Difference = $10,000 / 1.08⁴ − $10,000 / 1.08⁵Difference = $544.47

How Much More Would You Be Willing to Pay Today