Your mom is thinking of retiring. Her retirement plan will pay her either $270,000 immediately on retirement (which she will put in a fixed deposit in a bank for five years) or $370,000 five years after the date of her retirement. Which alternative should she choose if the interest rate is

(a)0% per year?

option 1: She should elect to receive $270,000 now.

option 2: She should elect to receive $370,000 in five years.

(b)7% per year?

Option 1: She should elect to receive $270,000 now.

Option 2: She should elect to receive $370,000 in five years.

(c)25% per year?

Option 1: She should elect to receive $270,000 now.

Option 2: She should elect to receive $370,000 in five years.