Question 947577
you can get $10,000 now and invest it at 8% or you can get $15,000 five years from now.


the future value of 10,000 for five years at 8% compounded yearly is equal to 10000 * 1.08)^5 which is equal to 14693.28077.


at the end of the 5 years, you will have more money if you wait 5 years to get the 15,000, rather than taking the $10,000 now and investing it at 8% for the next five years.