Question
You will receive the following cash payments as a retirement settlement: Year0123 4Amount$10,000$20,000$50,000$50,000$75,000 In place of the above you are offered a check today for
- You will receive the following cash payments as a retirement settlement:
Year0123 4Amount$10,000$20,000$50,000$50,000$75,000
In place of the above you are offered a check today for $182,000. Assuming an interest rate of 4%, which would you choose? If an interest rate of 5% was used would this change your selection? Explain.
Show Calculations.
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Personal Finance
Authors: Jeff Madura
7th Edition
0134989961, 978-0134989969
