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As a winner of a Breakfast cereal competition, you can choose one of the following prizes:

As a winner of a Breakfast cereal competition, you can choose one of the following prizes:

  1. $100,000 now
  2. $180,000 at the end of 5 years
  3. $11,400 a year forever 
  4. $19,000 for each of 10 years
  5. $6500 next year and increasing thereafter by 5% a year forever. 

if the interest rate is 12% which is the most valuable prize?

Top Answer

the most valuable prize... View the full answer

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Other Answers

Option " $19,000 for each of 10 years"... View the full answer

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