You just got a new job and are offered several contracts from which to choose. Which is the best deal assuming a positive rate of interest?

Points: 1

1. Payment of $6 million over six years, paid in installments at the beginning of each year, but growing by 3% per year.

2. Payment of $6 million over six years, paid in installments at the end of each year, but growing by 3% per year.

3. Payment of $6 million over six years, paid in equal installments at the beginning of each year.

4. Payment of $6 million over six years, paid in equal installments at the end of each year.