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    4. Your uncle offers you a choice of $20,000 in 50 years or $45 today. If money is discounted at 13 percent, which offer should you choose? Explain with details and computations. Suppose it is discounted at 10 percent, what will be your answer?
    Your uncle offers you a choice of $20,000 in 50 years or $45 today. If money is discounted at 13 percent, which offer should you choose? Explain with details and computations. Suppose it is discounted at 10 percent, what will be your answer?

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    0  Views: 730 Answers: 3 Posted: 12 years ago
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      3 Answers

      I'd take it now. Who knows what will be going on in fifty years. That's my form of simple calculation.

      12 years ago. Rating: 2
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        The way inflation is going what makes one think that $20,000 would not only be worth $45 either way I would tell him I would rather have $4,000 in 10 years.

        12 years ago. Rating: 1
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          All my uncles are dead, at least I hope they are we buried them, so I can`t really help you with your homework.

          12 years ago. Rating: 0
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