Assuming the interest rate is positive and constant over the next 10 years, when should he prefer to receive t?

An investor is given the opportunity to invest money today and receive $10,000 either 5 years from now or 10 years from now. Assuming the interest rate is positive and constant over the next 10 years, when should he prefer to receive the money? Why?|||If the investor has the choice of getting a $10,000 return on the investment in either 5 years or 10 years, he/she should choose getting that return in 5 years. He/she gets the same $10,000 back under either option. Getting it back sooner means he/she can reinvest it again.


----------------


We generally live in inflationary times. It's better to have $10,000 in five years than $10,000 in 10 years. The purchasing power of $10,000 will decrease over the five year difference in payment times.