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1. Your grandfather has offered you a choice of one of the following three alternatives: $6,000 now; $1,000 per year for 10 years; or $15,000

1. Your grandfather has offered you a choice of one of the following three alternatives: $6,000 now; $1,000 per year for 10 years; or $15,000 at the end of eight years. Assuming an interest/discount rate of 10%, which alternative should you choose? If you could earn 14%, would you still choose the same alternative? Show timelines and calculations for EACH option. (10 points)

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Your grandfather has offered you a choice of one of the following three alternatives: $6,000 now; $1,000 per year for 10 years; or $15,000 at the end of eight years. Assuming an interest/discount rate of 10%, which alternative should you choose? If you could earn 14%, would you still choose the same alternative? Show timelines and calculations for EACH option. (10 points)

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