Question: Please answer the following question QUICK, showing all work accordingly on all sections. Thank you. Consider the following alternatives: i. $130 received in one year

Please answer the following question QUICK, showing all work accordingly on all sections. Thank you.

Please answer the following question QUICK, showing all work accordingly on all sections. Thank you. Consider the following alternatives: i. $130 received in one

Consider the following alternatives: i. $130 received in one year ii. $230 received in five years iii. $320 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 8% per year. b. What is your ranking if the interest rate is only 3% per year? c. What is your ranking if the interest rate is 17% per year? Which do you prefer: a bank account that pays 4.3% per year (EAR) for three years or a. An account that pays 2.3% every six months for three years? b. An account that pays 7.7% every 18 months for three years? c. An account that pays 0.68% per month for three years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.)

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