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1. During a competition, you are asked to choose between 3 prizes. If the interest rate is 9%, which prize is the most valuable? a)
1. During a competition, you are asked to choose between 3 prizes. If the interest rate is 9%, which prize is the most valuable? a) $ 7400 next year, increasing by 2% forever. b) $90,000 now. c) $8900 every year forever.
2. You have an investment that pays 33 every year forever. If the interest rate is 7%. Find the present value (Round answer to the nearest dollar).
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