Timothy is retiring from his job soon at which time his employer will make the following offer: A lump sum amount of $200,000 A sum of $15,000 at the beginning of each year for the next 25 years. If the average interest rate is likely to be 5.5% p.a. for the next 25 years, which option should Timothy choose?

Timothy is retiring from his job soon at which time his employer will make the following offer: 1. A lumpsum amount of $200,0002. A sum of $15,000 at the beginning of each year for the next 25 years. If the average interest rate is likely to be 5.5% p.a. for the next 25 years, which option should Timothy choose?

Marian Plunket owns her own business and is considering an investment. If she undertakes the​ investment, it will pay $4,880 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,220 plus an additional investment at the end of the second year of $6,100. What is the NPV of this opportunity if the interest rate is 1.8% per​ year? Should Marian take​ it? (yes or no)

A couple takes a second mortgage of $100,000 and promises to pay it back with accured interest 15 years from now. They are given the interest option of simple interest at 4.5% per annum. Is this a good option? Give the answer supported by calculations.