Shawna Is Considering One of Two Options

question 84

Multiple Choice

Shawna is considering one of two options. The first option is to receive $1,800 per month for the first 5 years and $2,000 per month for the last 5 years based on an interest rate of 6.5% compounded monthly. The second option is to receive $145,000 now. Determine which option should be chosen to maximize benefits now.

• A) First option, as it provides benefit of $165,915.26 compared to $145,000 for second
• B) First option, as it provides benefit of $155,915.16 compared to $145,000 for second
• C) First option, as it provides benefit of $152,915.16 compared to $145,000 for second
• D) First option, as it provides benefit of $150,915.16 compared to $145,000 for second
• E) First option, as it provides benefit of $145,915.16 compared to $145,000 for second