Question: You have won a court judgment entitling you to a
You have won a court judgment entitling you to a one-time payment of $100,000. Due to legal delays and appeals, your attorney estimates it will take 2 years for you to actually collect the $100,000. If your personal discount rate is 5%, what lump-sum payment today is economically equivalent to receiving $100,000 in 2 years?
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