Carrie Tune will receive $18,000 a year for the next 20 years as payment for a song

Question:

Carrie Tune will receive $18,000 a year for the next 20 years as payment for a song she has just written. If a present 10 percent discount rate is applied,
a. Should she be willing to sell out her future rights now for $160,000?
b. Would she be willing to sell her future rights now for $160,000, if the payments will be made at the beginning of each year?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...

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