Business Math Lesson 10: Payment Plans, part 1
Channel: Amy Goldlist
Date: 25/06/2021

For your first job after graduation you have decided to accept a contract position.  The manager has offered to pay you $30,000 at the end of the first year and $35,000 at the end of the second year or to pay you $22,000 now, $20,000 at the end of the first year and $20,000 at the end of the second year.  Which option is better and by how much, if interest is 10% simple?  Use today as your focal date.