An investor is given the opportunity to invest money today?
- Filed under: Make Money Today
- Date: Nov 18,2009
An investor is given the opportunity to invest money today and receive $10,000 either 5 years from now or 10 years from now. Assuming the interest rate is positive and constant over the next 10 years, when should he prefer to receive the money? Why?
in your question it is not possible to receive 10k in either 5 or 10 years with the same interest rate. if you want that kind of money, the interest rate will be higher for the 5 years than it is in the 10 years (as long as he is investing one time). to help answer your question, remember a dollar today is worth more than a dollar tomorrow
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One Response for "An investor is given the opportunity to invest money today?"
in your question it is not possible to receive 10k in either 5 or 10 years with the same interest rate. if you want that kind of money, the interest rate will be higher for the 5 years than it is in the 10 years (as long as he is investing one time). to help answer your question, remember a dollar today is worth more than a dollar tomorrow
References :
accounting student