Multiple Choice
Amanda is considering one of two options. The first option is to receive $48,000 now. The second option is to receive $75,000 at the end of the fifth year. Determine which option should be chosen to maximize benefits now given an interest rate of 8.8% compounded annually.
A) Second option, as it provides benefit of $54,194.53 compared to $48,000 for second
B) Second option, as it provides benefit of $53,194.53 compared to $48,000 for second
C) Second option, as it provides benefit of $52,194.53 compared to $48,000 for second
D) Second option, as it provides benefit of $51,194.53 compared to $48,000 for second
E) Second option, as it provides benefit of $49,194.53 compared to $48,000 for second
Correct Answer:
Verified
Correct Answer:
Verified
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