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Question 26 4 pts You are 56 years old and you had been planning to retire at the age of 66. Your employer makes you
Question 26 4 pts You are 56 years old and you had been planning to retire at the age of 66. Your employer makes you an early retirement offer that gives you a choice between $500,000 immediately or 10 end-of-the-year payments of $58,616 (for a total of $586,160). What interest rate (to the closest whole percent) over the next ten years would make the two offers essentially equivalent from a time value of money point of view? (Hint: This is an A-BxC problem. Set up your equation and then solve for the factor in the appropriate exhibit table. This will allow you to identify the correct interest rate.) o 3% O 5% 0796 O 9% O 11%
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