Question
11. Jason is considering one of two options. The first option is to receive $500 per month for the first 3 years and $850 per
11. Jason is considering one of two options. The first option is to receive $500 per month for the first 3 years and $850 per month for the last 2 years based on an interest rate of 3.3% compounded semi-annually. The second option is to receive $35,000 now. Determine which option should be chosen to maximize benefits now. A. First option provides benefit of $35,684.42 compared to $35,000 for second B. First option provides benefit of $37,464.27 compared to $35,000 for second C. First option provides benefit of $38,861.85 compared to $35,000 for second D. Second option provides a benefit of $35,000 compared to $34,684.42 E. Second option provides a benefit of $35,000 compared to $33,464.27
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