Suppose the interest rate is expected to be 7% over the next ten years. Then getting paid $200 ten years from now has the same value as getting about _____ now.
A) $14
B) $70
C) $100
D) $400
Answer: C
Suppose the interest rate is expected to be 7% over the next ten years. Then getting paid $200 ten years from now has the same value as getting about _____ now.
A) $14
B) $70
C) $100
D) $400
Answer: C