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

$100,000

immediately on retirement or

$140,000

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?

Question content area bottom

Part 1

a. If the interest rate is

0%

per year, which alternative should you choose?

Part 2

You should

take the money now.

wait until 5 years after retirement.

(Select from the drop-down menu.)