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Who got the better deal and by how much in todays dollars

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Reference no: EM131665430

Question: Kristi Collmer and Ray Bergeron each received sign.

Kristi Collmer and Ray Bergeron each received signing bonuses from their accounting firms today. Kristi received $5,000 immediately. Ray will receive $1,500 at the end of each year for the next 4 years.

Assuming a 10% interest rate, who got the better deal and by how much (in today's dollars)?

A. Kristi, by $245
B. Ray, by $1,400
C. Kristi, by $1,002
D. Ray, by $1,962
E. Ray, by $1,000

Reference no: EM131665430

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