You may use any of the calculation methods introduced in this LE to support your work. Be sure to show your work clearly.

The Problem: Over the next 10 years, Dodie wants to invest some money in an annuity. Her bank gives her three options. Option 1: She can have a fixed rate of 6% for the 10 year period of her investment. Option 2: Her interest rate will be 4% for the first 5 years and 8% for the last 5 years. Option 3: Her interest rate will be 8% for the first 5 years and 4% for the last 5 years. Which option is better? Justify your answer mathematically using a tool of your choice (the formula, a spreadsheet or the TVM Solver). If Dodie changes the amount she invests, does that change which option is better? Show your work! Marks may be awarded as outlined below. If your teacher plans to use a different strategy to evaluate your work they will inform you before you start the assignment