Goldman Sachs DeckHard

An interviewer offers: '$1 million today or $2 million in 10 years?' What's the finance answer?

Model answer

Turn it into a breakeven discount rate: you're indifferent when (1+r)^10 = 2, which the rule of 72 solves instantly — 72/10 means r is about 7.2%. So if you believe you can earn more than roughly…

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