Problem based on market rate of interest


If the market rate of interest is 10%, a rational person would just as soon receive $1,100 three years from now as what amount today (round to the nearest dollar)?

a. $ 783.

b. $ 826.

c. $1,000.

d. $1,100.

e. None of the above is correct.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Problem based on market rate of interest
Reference No:- TGS096123

Expected delivery within 24 Hours