P4-9 (similar to) Question Help

You are thinking of retiring. Your retirement plan will pay you either $200,000 immediately on retirement or $280,000 five years after the date of your retirement. Which alternative should you choose if the interest rate is:

a. 0% per year?

b.8% per year?

c. 20% per year?

a. If the interest rate is 0% per year, which alternative should you choose?

You should wait until 5 years after retirement. or take the money now. (Select from the drop-down menu.)