A contractor was offered a contract whereby she would be paid in 36 equal monthly installments of $5,500, with the first payment made at the end of this month. She would rather be paid in a different pattern, but one that is of “equivalent” value to the monthly payment pattern. Determine what fair amount she should receive if she decides she want to be paid:
a. In 2 equal installments – one immediately (at T=0) and one at the end of month 36.
b. In 1 full amount, at the end of month 18 (the half-way point) of the contract.
c. In 8 equal installments – the first 4 at the end of the first 4 months of the contract, and 4 installments at the end of the last 4 months of the contract.
d. In an arithmetic gradient pattern, over the entire 36 months.