Interest rates
Bonus
Rate for two years
Rate for first year
Rate for second year
	Future Value
First alternative
Second alternative

(FV single cash flow, two interest rates) You have just received a $15,000 signing bonus from your new employer and decide to invest it for 2 years. Your banker suggests two alternatives, both of which require a commitment for the full 2 years. The first alternative will earn 8% per year for both years. The second alternative earns 6% for the first year and 10% for the second year. Interest compounds annually. Which alternative should you choose