Question $2$

$4\mathrm{.}5$ pts

You are comparing two investment options that are otherwise comparable, except for the timing of their payments. Both options will provide you with $$15,000$ of total income. Option A pays three annual payments, starting with $$3,000$ the first year followed by two annual payments of $$6,000$ each. Option B pays three annual payments of $$5,000$ each. All payments are at the end of the year. Your time value of money is $5$ percent compounded annually.

Which one of the following statements is correct glven these two options?

Option A has the higher future value at the end of year three.

OprtionAtsansmuty.

Option B is a perpetuity.

foth optlons are of equat value given that they both provide $$12000$ of ncome.

Option $8$ has a higher present value at time zero than does option A$.$