Your sibling has offered to give you either $50 comma 000 today or $100 comma 000 in 8 years. If the interest rate is 5 % per year, which option is preferable?
Added by Valerie H.
Step 1
Future Value = $50,000 * (1 + 0.05)^8 Future Value = $50,000 * (1.05)^8 Future Value = $50,000 * 1.477455 Future Value = $73,872.75 Show more…
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