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This posting addresses interest rates and retirement plans.

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You are thinking of retiring. Your retirement plan will pay you either $250000 immediately on retirement or $350000 five yrs. after the date of retirement. Which alternative should you choose if the interest rate is

a) 0% per yr
b) 8% per yr
c) 20% per yr

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Solution Summary

The solution provides the exact calculation for each option to determine the interest rates and best situation for retirement.

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