Tommy is retiring from his job soon at which time his employer willmake the following offer:1. A lumpsum amount of $200,0002. A sum of $15,000 at the beginning of each year for the next 25years.If the average interest rate is likely to be 5.5% p.a. for the next25 years, which option should Timothy choose?
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Tommy is retiring from his job soon at which time his employer will
make the following offer:
1. A lumpsum amount of $200,000
2. A sum of $15,000 at the beginning of each year for the next 25
years.
If the average interest rate is likely to be 5.5% p.a. for the next
25 years, which option should Timothy choose?
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