You just finished writing a children’s book “Fun with Financ…
You just finished writing a children’s book “Fun with Finance–H-Mo’s Lessons for Life!” Given the thrilling topic, everyone naturally expects it to be a huge success!! You have received offers for two different book deals. Offer #1: You would receive $500,000 per year for three years starting two years from today. Offer #2: $350,000 today followed by thre more annual payments that are each 1% larger than the last. A. Plot each contract on a timeline in Excel. B. Find the value of each contract today at an interest rate of 12%. Use formulas from your formula sheet to do the calculations. C. Which offer do you accept? Enter the value of each contract and your final choice.