Question: 8. (1pt) When compounding, the longer the time frame the higher the future value. a. True b. False 9. (1pt) When discounting, the higher the
8. (1pt) When compounding, the longer the time frame the higher the future value. a. True b. False 9. (1pt) When discounting, the higher the interest rate, the higher the present value. a. True b. False 10. (1pt) You have the choice of receiving a $10,000 signing bonus today, or a $12,000 retention bonus in 3 years. You think you could earn 3% compounded annually if you invested the money today. Which option would you take? Show your work. (hint: make the offers have a comparable timeframe)
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