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Which of the Following Investments Would You Prefer? Support Your

question 95

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Which of the following investments would you prefer? Support your answer.
A) A $10,000 savings bond that grows at the rate of 6% per year compounded semi-annually, for 5 years.
B) One lump sum payment of $5,000 now plus another $5,000 after 2 years.You estimate you could invest the first payment at 5% and the second one at 6%.
C) A single payment of $13,500 in 5 years.


Definitions:

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