Solved: She gets 3200 each year for 10 years first payment due, Mathematics

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She gets 3200 each year for 10 years first payment due

Question: Lucy is offered the choice between the following three options:

(a) She gets $3200 each year for 10 years. First payment due after 1 year

(b) She gets $7000 today, and thereafter $3000 each year for 5 years. First payment after 1 year

Calculate the present values of the three options. What would you advise Lucy to choose?

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Mathematics: She gets 3200 each year for 10 years first payment due

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Mathematics: She gets 3200 each year for 10 years first payment due

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