In his will, Frank's uncle has given Frank the choice between two alternatives:
Alternative 1.................... $2000 cash
Alternative 2.................... $150 cash now plus $100 per
month for 20 months beginning
the first day of next month
(a) At what rate of return are the two alternatives equivalents?
(b) If Frank thinks the rate of return in (a) is too low, which alternative should he select?