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Question 3. You participate in an Instagram contest and you are offered the following prizes. If the annual interest rate is 8% APR, which
Question 3. You participate in an Instagram contest and you are offered the following prizes. If the annual interest rate is 8% APR, which one is the most valuable prize? Show your calculations for each alternative, in writing and in Excel. (20 points) A) $150,000 now. B) $170,000 at the end of 6 years (t=6). C) $10,000 per year forever, the first payment starts today (t=0). D) $9,000 a year forever (starting at t=1) that will grow forever at a 2% rate. E) $800,000 at the end of 20 years (t=20). F) 8 semi-annual payments of $14,000 where the first payment starts at the end of the first semester (t=1). G) $14,000 a year, starting at the beginning of this year (t=0) for 12 payments. H) $70,000 in year 2 and $50,000 in year 4.
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