Question: The current annual interest rate is 4 % . Economically speaking, which would you rather have? Option 1 . $ 1 0 0 0 given

The current annual interest rate is 4%. Economically speaking, which would you rather have?
Option 1. $1000 given to you at the end of every year for 6 years starting at end of year 1 and ending at the end of year 6?
OR
Option 2. $4000 given to you right now?
Option 1
Option 2
The current annual interest rate is 4 % .

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!