A morning radio show offered the following four prizes as alternative prizes for one of its competitions. Assuming an 11% discount rate, which is the most valuable prize?

(Show working to justify your answer.)

(a) $8,000 every year for 5 years, with the first amount paid at year 4.

(b) $5,500 every year for 4 years, with the first amount paid today?

(c) $1,800 every year, forever, with the first amount paid after 1 year.

(d) $1,000 now, $9,000 in 3 years, and $20,000 in 8 years.

(e) State the most valuable prize. (Give a reason for your choice.)