Question: A) she been presented with the option to take a lump sum payment of $ 750,000 today or payment in the amount $75,000 over next

A) she been presented with the option to take a lump sum payment of $ 750,000 today or payment in the amount $75,000 over next ten years. Assume 3% interest rate. which preferred option based the present value of both payouts?

  1. take the lump sum payment of 750,000
  2. Take the 75,00 payout over 10 year

B) You will need to meet your $ 3000 savings gold over the next 5 years. You do not have anything saved, but you are expecting to make contribution of $400 each year toward goal. what is your interest rate?


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