Jarrod says that the future value of $250 saved for one year at 6 percent interest is less than the future value of $250 saved for two years at 3 percent interest.Simon says that the present value of a $250 payment to be received in one year when the interest rate is 6 percent is less than the value of a $250 payment to be received in two years when the interest rate is 3 percent.
A)Jarrod and Simon are both correct.
B)Jarrod and Simon are both incorrect.
C)Only Jarrod is correct.
D)Only Simon is correct.

Question

Quizplus · Accepted Answer

The Answer of Jarrod says that the future value of $250 saved for one year at 6 percent interest is less than the future value of $250 saved for two years at 3 percent interest.Simon says that the present value of a $250 payment to be received in one year when the interest rate is 6 percent is less than the value of a $250 payment to be received in two years when the interest rate is 3 percent.
A)Jarrod and Simon are both correct.
B)Jarrod and Simon are both incorrect.
C)Only Jarrod is correct.
D)Only Simon is correct.

Jarrod Says That the Future Value of $250 Saved for One