If the market rate of interest is 10%, a rational person would just as soon receive $1,100 three years from now as what amount today (round to the nearest dollar)?
A) $783
B) $826
C) $1,000
D) $1,100

Name: If the market rate of interest is 10%, a rational person would just as soon receive $1,100 three years from now as what amount today (round to the nearest dollar)? A) $783 B) $826 C) $1,000 D) $1,100
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Question

Quizplus · Accepted Answer

Calculation: $1,100 × 0.75131 = $826.

If the Market Rate of Interest Is 10%, a Rational