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Hi, please answer the following.

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4.
Your eccentric wealthy uncle wants to donate money to you so that you can pursue your
hobbies without fulltime employment. If given a choice between the following four income
streams, which would you prefer assuming an interest rate of 5% p.a.?
(a)
$400,000 today
(b)
$15,000 per year forever
(c)
$30,000 each year for the next 20 years
(d)
$600,000 in 10 years' time

Top Answer

Option A, is the best as it... View the full answer

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