Compare the Economic Values of Two Options Given an Annual

Multiple Choice

Compare the economic values of two options given an annual rate of 4.5%. Option 1 - $1,100 in 1 month and $850 in 3 months. Option 2 - $1,050 in 6 months and $925 in 9 months. Given the following information, choose the best option.

A) Option 1 - benefit of $14.74
B) Option 1 - benefit of $24.74
C) No difference between options
D) Option 2 - benefit of $14.74
E) Option 2 - benefit of $24.74