EclectEcon

Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities

C'est la vie; c'est la guerre; c'est la pomme de terre . . . . . . . . . . . . . email: jpalmer at uwo dot ca


. . . . . . . . . . .Richard Posner should be awarded the next Nobel Prize in Economics . . . . . . . . . . . .

Tuesday, December 14, 2004

Present Value Question for My Intro Students

I think the folks at our university's publication service need to study the concept of present values more:
[Oct. 15th] CIBC today announced a $1-million gift to create the CIBC Centre in Human Capital and Productivity at Western. The donation, pledged over 10 years at $100,000 a year.
Argh. Is this a losing battle? In what sense is that gift worth $1 million? What is the present value of a ten-year annuity of $100,000 at current interest rates?
To make matters worse, I have to write about it in an alumni newsletter for our department. Ugh.
 
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