As a winner of a Breakfast cereal competition, you can choose one of the following prizes:
- $100,000 now
- $180,000 at the end of 5 years
- $11,400 a year forever
- $19,000 for each of 10 years
- $6500 next year and increasing thereafter by 5% a year forever.
if the interest rate is 12% which is the most valuable prize?
the most valuable prize... View the full answer