The interest rate is 5 percent. Assuming you only care about the present value, then you would be equally happy if you received a gift of either $100 today or a gift of Hint: calculate the present value of each and pick the one equal to $100 Select correct answer.

1 $109.30 two years from today.

2 $112.49 three years from today.

3 $121.55 four years from today.

4 $123.67 five years from today.

Answer rating: 100% (QA)

To determine which gift is equivalent to receiving 100 today we need to calculate the p... View the full answer