An author is to be paid royalties for publishing a book two


Question: An author is to be paid royalties for publishing a book. Two alternative offers are made:

(a) The author can be paid $21 000 immediately,

(b) There can be 5 equal annual payments of $4600, the first being paid at once.

Which of these offers will be more valuable if the interest rate is 6% per annum?

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Mathematics: An author is to be paid royalties for publishing a book two
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