Which is worth more to you today? The interest rate is 4.50% p.a.

Option 1: $100,000 received a year from now.

Option 2: $180,000 to be received eleven years from now.

a.Option 2

b.It is impossible to tell.

c.It depends on how much risk you want to take.

d.Option 1

e.The two options are equivalent.