Question: exercise 2: future values and present values If you receive an inheritance and have two payment options, would you prefer $85,000 now or payments made

exercise 2: future values and present values

If you receive an inheritance and have two payment options, would you prefer $85,000 now or payments made at the beginning of each year in the following way?

Year 1	$20,000
Year 2	$25,000
Year 3	$15,000
Year 4	$10,000
Year 5	$25,000

Calculate the future value of both options by the end of the fifth year if you can get 8% on your investment.

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