Would you be willing to pay $24,099 today in exchange for $100,000 in 30 years? What would be the key considerations in answering yes or no? Would your answer depend on who is making the promise to re:
a) Yes, key considerations include inflation and opportunity cost.
b) No, key considerations include present value and risk factors.
c) Yes, it depends on the reliability of the promise maker.
d) No, it depends on the interest rate environment.
