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On retirement, Fairy Tail Inc. gives an employee one of the following options: Option A: Receiving 2,000,000 today. Option B: Receiving 250,000 at the end
On retirement, Fairy Tail Inc. gives an employee one of the following options: Option A: Receiving 2,000,000 today.
Option B: Receiving 250,000 at the end of every 6 months for 5 years where the nominal rate of interest is 8% convertible semiannually.
Option C: Receiving 125,000 at the beginning of every quarter for 5 years where the nominal rate of interest is 10% convertible quarterly.
Which option is the best? Justify your answer.
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