What is the best option for the winning team to choose in order to receive the most money after 3 years?
The winning tribe is given the prize of one million dollars. After the show, the producers inform the winning team that they will not receive the prize money for another 3 years, but can choose one of two options in receiving their winnings.
Option 1: $1,000,000 invested in a simple interest account that earns 3.2% annually.
Option 2: $1,000,000 invested at a yearly interest rate of 2.8% compounded monthly.