VirtuousCirq asked:


I’m doing a problem where i’m calc’ing how much i should be willing to pay now (present value) for an annuity that has an interest payment (discount) of varying amounts. The high the i goes, calcs telll me the less I should give in money right now.

If its got a higher interest rate wouldn’t it be worth more in the future, so why would I pay less?

Vision Without Glasses