Compute the present value


Your uncle offers you choice of $110,000 in 10 years or $49,000 today.

Compute the present value of $110,000 if the money is discounted at 8 percent.

Which should you choose, $49,000 today or $110,000 in 10 years?

Which would you choose if you had to wait 12 years?

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Finance Basics: Compute the present value
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