Answer:
The best choice is to accept $200 in 10 years.
Explanation:
The offer is $100 today with interest for 10 years or $200 after ten years.
Applying the interest on $100
For 4% interest
4/100 *100 = $4
4*10 =40
Amount = $100+$40 =$140 --------a bad choice
For 6% interest
6/100*100 = $6
$6*10 = $60
Amount = $100+$60= $160---------still a bad choice
For 8% interest
8/100*100 =$8
$8*10 = $80
Amount = $100+$80 = $180 -------still not a better choice
The best choice is to accept $200 in 10 years.
