Question

An executive about to retire at the age of 60, 1 lis

employer has offered him two post retirement

options:

a.) Rs 2000000/- Lumpsum

b.) Rs 2,50000/- for next 10 years

Assuming rate of interest is 10% .in excel worksheet.

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Answer 1

I think answer is option no B

Hope it's helpful for you

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Answer 2

Answer:

option A is a better option.

Explanation:

since the present value of 2,50,000 at the end of 10 years is 15,36,150, which is less then the lump-sum of ₹20,00,000.