Register
for arthur's graduation gift, Arthur's grandmother gives him a choice: he can receive 1000 today or 1050 one year from today. at what annual interest rate would Arthur be indifferent to choosing between
85.2k views
1 vote
for arthur's graduation gift, Arthur's grandmother gives him a choice: he can receive 1000 today or 1050 one year from today. at what annual interest rate would Arthur be indifferent to choosing between the two opinions

User AnthonyWJones
by
4.0k points

1 Answer

0 votes

Answer:

5%

Step-by-step explanation:

At an interest rate of 5% ,the present value of $1050 is $1000

User CptEric
by
4.5k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

4.5m questions

5.8m answers

Other Questions

How can expansionary​ expenditure-based fiscal policy lead to crowding out in the​ economy? A. ​Expenditure-based fiscal policy increases the national​ debt, inducing​ forward-looking households and firms
Everyone has a unique spending plan. Which of the following factors has the greatest effect on a person's spending decisions?
Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation.
Andrew doesn’t want to spend a lot of money on student loans, and does not qualify for grants. what is his best option for affording a bachelors degree
The method of appraisal in which the appraiser estimates the replacement cost of the building, deducts depreciation, and adds the value of the site is:________
Link Copied!