Question: as the winner of a song writing competition you can...
As the winner of a song writing competition, you can choose between the prizes listed below. If the interest rate is 8 percent, which prize is the most valuable?
$9,000 a year forever.
$160,000 at the end of five years.
$7,000 next year and increasing by 2.25 percent a year forever.
$16,500 each year for 10 years.