Now 1 2 Option a Option b Assume that annual interest rate is 10%. Find the values of a, b, c, d and e which make the present values of two options equal Problem 1 3 4 A 60 Problem 2 Now 1 Option a 60 26 60 60 36 4 60 Option b B PV Problem 3 Now Option a 60 910 60 289 60 gwo 3 4 60 Option b C Problem 4 Now 1 Option a 60 60 60 38 28 4 60 Option b D 1060 (2000+60) N=4 217=10 N=3 114=10 R Problem 5 Now 1 2 Option a Option b 26 60 E 3 60 2 (~ 2 Problem 6 Now 1 2 Option a 60 60 38 + 60 Option b F Problem 7 Now 1 Option a Option b 20 G 3 4 G 60 Problem 8 Now 1 Option a 60 60 28 60 40 3 4 80 00 Option b H Problem 9 Now 1 2 Option a 60 26 3 60 Option b Problem 10 Now 1 2 Option a 60 26 60 forever 60 60 60 60 T Option b J