For less than a dollar a day, Jerri can join a fitness club. She would have to

Question:

For less than a dollar a day, Jerri can join a fitness club. She would have to pay $24.99 at the end of each month for 30 months, or she can pay a lump sum of $549 at the beginning. Interest is 16.2% compounded monthly. Should Jerri pay a lump sum or use the monthly payment feature?
Compute the present value of each alternative and determine the preferred alternative according to the criterion (round off to the nearest dollar).
Discounted Cash Flows
What is Discounted Cash Flows? Discounted Cash Flows is a valuation technique used by investors and financial experts for the purpose of interpreting the performance of an underlying assets or investment. It uses a discount rate that is most...