P4-9 (similar to)

Question Help

You are thinking of retiring. Your retirement plan will pay you either

$ 250 comma 000$250,000

immediately on retirement or

$ 350 comma 000$350,000

five years after the date of your retirement. Which alternative should you choose if the interest rate is:a.

0 %0%

per year?b.

8 %8%

per year?c.

20 %20%

per year?a. If the interest rate is

0 %0%

per year, which alternative should you choose?You should

wait until 5 years after retirement.

take the money now.

(Select from the drop-down menu.)