Home assignment no 2 (25 pts)
The winner of the lottery can collect his prize in four ways:
- immediately $10,000 zł
- immediately $5,000, and after two years 7,000 zł
- Flat payment of $2,500 every year for 5 years (at the beginning of the year, first payment at once)
- $1,500 annually for an unlimited period of time.
Which form of payment is the most advantageous for the winner?
The annual interest rate is 20%.