Jennifer Williams received an inheritance from her great-grandmother.
Jennifer Williams received an inheritance from her great-grandmother. At the reading of the will, the attorney revealed that she had three options for receiving his inheritance:
- $350,000 cash instantly
- $200,000 cash immediately, along with a six-period annuity of $30,000 starting one year from today
- A six-period annuity of $100,000 starting one year from today. The interest rate is 10%.
Jennifer decided to ask you, a financial advisor, for assistance in choosing the best option. Which option you should recommend for Jennifer? Use the file to explain your answer to and provide reasons for your selection. Remember to show all calculations.
Answer preview Jennifer Williams received an inheritance from her great-grandmother.
