Question: You're offered $ 5 , 0 0 0 today or $ 1 , 0 0 0 per year for 6 years. If the interest rate

You're offered $5,000 today or $1,000 per year for 6 years. If
the interest rate is 5%, which option has the higher present
value?
It depends on the compounding frequency.
$5,000 today.
$1,000 per year for 6 years.
Both have the same present value.
You're offered $5,000 today or $1,000 per year for 6 years.

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