Problem addressing the time value of money


Task: Time value of money

You are to choose between receiving $909 today of $1000 in 12 months' time, assuming interest rate of 10 percent and rounding off the dollar, should you be indifferent between the two options? Why of why not? What does this tell you about the relationship between $1 today and $1 tomorrow?

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Finance Basics: Problem addressing the time value of money
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