Compare the Economic Values of Two Options Given an Annual

Multiple Choice

Compare the economic values of two options given an annual rate of 8.5%. Option 1 - $900 in 60 days and $1,200 in 180 days. Option 2 - $925 in 90 days and $1,050 in 120 days. Given the following information, choose the best option.

A) Option 1 - benefit of $111.85
B) Option 1 - benefit of $138.45
C) No difference between options
D) Option 2 - benefit of $111.85
E) Option 2 - benefit of $138.45