Which is worth more to you: (a) A $10,000 payment today or (b) A $1,000-per-year higher salary

Question:

Which is worth more to you:
(a) A $10,000 payment today or
(b) A $1,000-per-year higher salary for as long as you work? At what interest rate would (a) be worth more to you than (b)? Does your answer depend on how many years you expect to work?

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The answer depends on how much longer you intend to work and the discount rate ...View the full answer

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Aysha Ali

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