07-02-2003, 06:48 PM
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Confirmed User
Join Date: Feb 2003
Location: EL TOREO DE 4 CAMINOS
Posts: 1,714
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Quote:
Originally posted by Rick Latona
Ok,
The question is regarding the time value of money. I need to know which is more valuable, why and what formula was used to determine the answer.
A. 2,250 dollars a month for 40 years.
B. 2,750 dollars a month for 18 years.
Use 8% as an interest rate and tell me what each contract is worth today in a lump sum.
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A is better
__________________
SEACREST OUT!
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