What is applicable interest rate in percent

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Reference no: EM13101154

Q. Stephanie and Greg was the first and second place winner in a recent contest sponsored by A Lucky Duck. The first place winner is required to represent the company at numerous events for one year in exchange for receiving a prize of $1000 a year forever. The second place winner is awarded a prize of $1000 a year for $100 years and has no commitments or future obligations to the firm. The applicable interest rate is 8 percent. Assuming these two individuals have perpetual lives, which person is rally the top winner in this contest and explain why?

Reference no: EM13101154

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