Which is worth most, at present values, assuming an annual rate of interest of 8%?
A、$1,200 in exactly one year from now
B、$1,400 in exactly two years from now
C、$1,600 in exactly three years from now
D、$1,800 in exactly four years from now
A、$1,200 in exactly one year from now
B、$1,400 in exactly two years from now
C、$1,600 in exactly three years from now
D、$1,800 in exactly four years from now
【参考答案及解析】
$ PV of $1,200 in one year = $1,200 x 0.926 = 1,111.20 PV of $1,400 in two years = $1,400 x 0.857 = 1,199.80 PV of $1,600 in three years = $1,600 x 0.794 = 1,270.40 PV of $1,800 in four years = $1,800 x 0.735 = 1,323.00
$ PV of $1,200 in one year = $1,200 x 0.926 = 1,111.20 PV of $1,400 in two years = $1,400 x 0.857 = 1,199.80 PV of $1,600 in three years = $1,600 x 0.794 = 1,270.40 PV of $1,800 in four years = $1,800 x 0.735 = 1,323.00