Imagine that someone offers you $100 today or $200 in 10 years. You would prefer to take the $100 today if the interest rate is Group of answer choices 4 percent. 6 percent. 8 percent. All of the above are correct.

The best choice is to accept $200 in 10 years.

Explanation:

The offer is $100 today with interest for 10 years or $200 after ten years.

Applying the interest on $100

For 4% interest

4/100 *100 = $4

4*10 =40

Amount = $100+$40 =$140 a bad choice

For 6% interest

6/100*100 = $6

$6*10 = $60

Amount = $100+$60= $160still a bad choice

For 8% interest

8/100*100 =$8

$8*10 = $80

Amount = $100+$80 = $180 still not a better choice

The best choice is to accept $200 in 10 years.

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