If you require a $12\%$ annual return on your investments, would you prefer $$20,000$ six years from today or an annuity paying $$1,800$ at the beginning of each year for $13$ years.

Question $20$Answer

a$.$

The annuity paying $$1,800$ at the beginning of each year for $13$ years.

b$.$

The annuity paying $$1,600$ at the beginning of each year for $15$ years.

c$.$

The $$20,000$ six years from today

d$.$

The $$20,000$ five years from today