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A 50-year-old employee of IQ Entertainment was asked to select one of th Next question retirement packages. (Click the icon to view the potential
A 50-year-old employee of IQ Entertainment was asked to select one of th Next question retirement packages. (Click the icon to view the potential early retirement packages.) (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) Requirement (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Present Value of an Ordinary Annuity table.) (Click the icon to view the Present Value of an Annuity Due table.) Which retirement package should the employee select if he can invest funds at 5% compounded annually, assuming all retirement payments are received at the end of the year? First, calculate the present value of each retirement package. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round intermediary currency computations and your final answer to the nearest cent, SX.XX.) Present value Package A Package B Package C 60,000 More info The employee should select Package A: $60,000 received today. Package B: $10,000 to be received each year for the next eight years. Package C: $40,000 received today and $5,000 per year for five years beginning at age 55.
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