Receive lump-sum payments either now or in the future

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Reference no: EM132044851

1. Jeff has the opportunity to receive lump-sum payments either now or in the future. Which of the following opportunities is the best, given that the interest rate is 4% per year?

A. one that pays $ 900 now

B. one that pays $ 1080 in two years

C. one that pays $ 1350 in five years

D. one that pays $ 1620 in ten years

2. A preferred stock pays 3% on its par value of $200.00, and the required rate of return is 9%. What is the dividend?

A. $1.80 B. $6.00 C. $60.00 D. $18.00

Reference no: EM132044851

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