As winner of recruiting competition

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Reference no: EM131861296

1. As winner of a recruiting competition, you can choose one of the prizes given below. If the interest rate is 10%, which prize do you think is worth the most? SHOW ALL WORK

A. $100,000 today

B. $150,000 at the end of five years

C. $5,000 next year and increasing thereafter by 4.5% a year forever

D. $15,000 each year of 10 years

2. SHOW ALL WORK In 2016, the average price of a house was $275,000. 6 years earlier, the average price was $210,000. What was the annual increase in selling price?

Reference no: EM131861296

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