Jason Is Considering One of Two Options

Multiple Choice

Jason is considering one of two options. The first option is to receive $500 per month for the first 3 years and $850 per month for the last 2 years based on an interest rate of 3.3% compounded semi-annually. The second option is to receive $35,000 now. Determine which option should be chosen to maximize benefits now.

A) First option provides benefit of $35,684.42 compared to $35,000 for second
B) First option provides benefit of $37,464.27 compared to $35,000 for second
C) First option provides benefit of $38,861.85 compared to $35,000 for second
D) Second option provides a benefit of $35,000 compared to $34,684.42
E) Second option provides a benefit of $35,000 compared to $33,464.27