If an investor had a choice of receiving $1,000 today, or - 1620

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     If an investor had a choice of receiving $1,000 today, or $1,000 in five years, which would the average investor prefer?

a.       $1,000 in five years because they are not good at saving money.

b.      $1,000 today because it will be worth more than $1,000 received in five years.

c.       $1,000 in five years because it will be worth more than $1,000 received today.

d.      Investors would be indifferent to when they would receive the $1,000.

e.       None of the above.

Solution Description

1.            If an investor had a choice of receiving $1,000 today, or $1,000 in five years, which