Martha Left an Inheritance to Her Grandson That Will Pay

Multiple Choice

Martha left an inheritance to her grandson that will pay him $1,500 on the first day of every other year.When computing the PV of this inheritance,the grandson should use:

A) simple interest.
B) a semiannually compounded discount rate.
C) an effective annual rate.
D) a 2-year discount rate.
E) a semiannual discount rate.