Suppose your uncle offers you $200 today or $355 in 8 years. You would prefer to take the $200 today if the interest rate is
A)7 percent.
B)6 percent.
C)8 percent.
D)5 percent.

Name: Suppose your uncle offers you $200 today or $355 in 8 years. You would prefer to take the $200 today if the interest rate is A)7 percent. B)6 percent. C)8 percent. D)5 percent.
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Question

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If the interest rate is 8 percent, the present value of $355 in 8 years is less than $200 today, making the $200 today more preferable.

Suppose Your Uncle Offers You $200 Today or $355 in 8