You work for a jewellers and have sourced a good goldsmith who is able to sell you 100 ounces of gold for $1 000 000. you approach your two main customers. Mr martin says he will buy the gold from you for $1 055 000 in six months whereas Ms Kuchner tells you that she will be able to buy the gold from you in two years time for $1 160 000.
What is the Annual Percentage Rate offered by Martin? What is the Annual Percentage Rate offered by Kuchner?
Which option would you go for?