Much to your surprise, you were selected to appear on the TV show

Much to your surprise, you were selected to appear on the TV show

Much to your surprise, you were selected to appear on the TV show, “The Price is Right.” As a result of your prowess in identifying how many roles of toilet paper an average American family keeps on hand, you win the opportunity to choose one of the following: $2,000 today, $10,000 in 10 years, or $31,000 in 29 years. Assuming you can earn 16% on your money, which should you choose? If you are offered $10,000 in ten years and can earn 16% on your money, what is the present value of $10,000?


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