You just won a prize, you can either receive Rs. 1000 today or Rs. 1,050 in one year. Which option do you prefer and why if you can earn 5 percent on your money?
ARs. 1,000 because it has the higher future value
BEither because both options are of equal value
CRs. 1,050 because it is more money
DRs. 1,000 because you receive it sooner
Correct answer
B. Either because both options are of equal value
Explanation
Either because both options are of equal value is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.