Question: Present Value vs Future Value - Help needed

Well, I thought choosing to take the $1000 today would be better initially. My reasoning is that the PV of $1,100 a year from today would be $1047.62 at that time. In contrast, taking the FV of $1000 today would give me $1050 in one year. The FV ($1050) in one year is more the PV ($1047) of $1,100 a year from today. Does that make sense?

By "taking the greater value," I am assuming you mean take the $1100 one year from today. Correct?
 
ntq said:
Well, I thought choosing to take the $1000 today would be better initially. My reasoning is that the PV of $1,100 a year from today would be $1047.62 at that time. In contrast, taking the FV of $1000 today would give me $1050 in one year. The FV ($1050) in one year is more the PV ($1047) of $1,100 a year from today. Does that make sense?

By "taking the greater value," I am assuming you mean take the $1100 one year from today. Correct?
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By taking the greater value I mean choosing the greater value out of 2 choices, which are either the present values or the future values. We need to compare apples to apples. That's the reason for conversions from future value to present or vice versa. So, can you compare apples to apples? From your explanation it wasn't clear whether you understood which was which.
 
Thanks for your help. I was able to figure it out. 1047 (PV) is more than 1000 (PV) today and 1100 (FV) is more than 1050 (FV) in 1 year.
 
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