Pop Quiz Hotshots
OK, a few question to get your minds thinking:

A) All things being equal, do you prefer to receive a dollar today, or a dollar a year from now?

B) Assuming that the interest rate is 3.8%, would you prefer $3.50 today or $3.63 a year from now?

C) Let’s say I owe you $10.00 in three years, and that the interest rate is again 3.8% (assume that it's 3.8% for all three years). Which do you prefer, $10.00 three years from now or $8.94 today?

Understanding the answers to these questions is key to understanding a part of the debate over Social Security.
- posted by Anonymous @ Monday, March 14, 2005