Your brother has offered to give you either $35,000 today or $70,000 in 11 years. If the interest rate is 6% per year, which option is preferable? The present value of the future amount (amount received in 11 years) is $ (Round to the nearest dollar.)

Your brother has offered to give you either $35,000 today or $70,000 in 11 years. If the interest rate is 6% per year, which option is preferable? The present value of the future amount (amount received in 11 years) is $ (Round to the nearest dollar.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Your brother has offered to give you either $35,000 today or $70,000 in 11 years. If the interest rate is 6% per year,
which option is preferable?
The present value of the future amount (amount received in 11 years) is $
(Round to the nearest dollar.)

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