What would be more valuable, receiving $1,895 today or receiving $3,450 in six years if interest rates are 8 percent?
A) receiving $1,895 today
B) receiving $3,450 in six years
C) They are worth the same amount
D) Need more information to make a determination.

Question

Quizplus · Accepted Answer

The future value of $1,895 in six years at 8% interest is $2,673.44, which is less than $3,450. Therefore, receiving $3,450 in six years would be more valuable.

What Would Be More Valuable, Receiving $1,895 Today or Receiving