What lesser amount would you accept to get the money

Reference no: EM132199118

Question - The Situation: You have earned and been awarded a bonus by your employer. However, due to budget problems, the company must pay it in the future and not now. You will be compensated for waiting by being given extra money on top of your bonus when it is paid. What are you willing to accept to make the delayed bonus equal to receiving the bonus NOW?

Q1. If the bonus is $100 now, what would you accept one year from now?

Q2. If the bonus is $1,000 now, what would you accept one year from now?

Q3. If the bonus is $1,000 to be paid one year from now, what lesser amount would you accept to get the money NOW?

Q4. If the bonus is $1,000 but won't be paid for a year from now, what would you accept two years from now?

Reference no: EM132199118

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