Question

There are three choices available for an individual, receiving rs. 20,000 today, receiving 35,000 after 5 years and receiving rs. 2500 per year indefinitely. if the rate of interest is 8%, which alternative is better

Answer 1

Hey Mate

OPTION a is a better choice as it is the highest of the all three offers given

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Answer 2

35000×5%=700×8%=560because rate of interest is lesser in second option