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You are offered the following options. Which option is the most valuable? (show your caclulations) Interest rates are Option A: Option B: Option C: 1.25000% per month, compounded monthly. $175,500 today $4,270 every 2 months for 24 years $5,527,503 after 24 years L

You are offered the following options. Which option is the most valuable? (show your caclulations) Interest rates are Option A: Option B: Option C: 1.25000% per month, compounded monthly. $175,500 today $4,270 every 2 months for 24 years $5,527,503 after 24 years L

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You are offered the following options. Which option is the most valuable? (show your caclulations) Interest rates are Option A: Option B: Option C: Option A = $175,500 today Option B = Option C = 1.25000% per month, compounded monthly. $175,500 today $4,270 every $5,527,503 after today today Therefore the most valuable option is: 2 months for 24 years 24 years Lis
Transcribed Image Text:You are offered the following options. Which option is the most valuable? (show your caclulations) Interest rates are Option A: Option B: Option C: Option A = $175,500 today Option B = Option C = 1.25000% per month, compounded monthly. $175,500 today $4,270 every $5,527,503 after today today Therefore the most valuable option is: 2 months for 24 years 24 years Lis
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