What is the present value of 500,000 fifteen years from now at a
4% interest rate...
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Economics
What is the present value of 500,000 fifteen years from now at a4% interest rate with exponential discounting? With hyperbolicdiscounting? When would you choose to use hyperbolic discountinginstead of exponential discounting?
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N 15 years R 4 A 500000 Exponential Discounting PV A eRN PV 500000 e415100 PV 274405818 Hyberbolic Discounting PV A 11RN PV 5000001415100 PV 312500 Hyperbolic discounting is when people
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