Helen is negotiating a consulting contract.

She can choose between the two compensation packages

shown at the left.If rates are 5%, which is better? Conclusion:

Package 1 :

Year 1

$35,000

Year 2

$38,000

Year 3

$42,000

Year 4

$75,000

Package 2:

Year 1

$46,500

Year 2

$46,500

Year 3

$46,500

Year 4

$46,500