payment plans
You win a contest. The prize is cash, and you are offered several alternative payment plans. Which plan should you choose? Assume you can earn 5 percent on your money and ignore inflation.
(a) $30,000 today
(b) $40,000 in five years
(c) $10,000 one year from today and $25,000 two years later
(d) $4000 per year starting today for the next ten years
payment plans