What is the maximum amount you would be willing

Reference no: EM13685363

Presume that you were offered $3000 to be delivered in one year and presume that you had an alternative of putting money into a CD paying annual interest of 10 percent.

a. Would you pay $2800 now in exchange of that $3000 in one year?

b. Presume that the offer of $3000 was to be delivered in two years instead of one year what is the maximum amount you would be willing to pay for?

Reference no: EM13685363

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