If the interest rate is 10% per annum,most people would rather receive $1 now than $1.06 in one year's time:

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Quizplus · Accepted Answer

This is because people tend to have a preference for present consumption over future consumption, and the 10% interest rate is not high enough to offset this preference. In other words, the prospect of receiving $1 now is more valuable to most people than the prospect of receiving $1.06 in one year's time, even though the latter amount includes the additional interest earned over that period.

If the Interest Rate Is 10% Per Annum,most People Would