A builder is offered one of two methods of payment: Option 1: A single sum of $73
Question:
A builder is offered one of two methods of payment:
Option 1: A single sum of $73 000 to be paid now.
Option 2: Five equal payments of $15 000 to be paid quarterly with the first instalment to be paid now.
Advise the builder which offer to accept if the interest rate is 6% compounded quarterly.
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For Option 2 the present value o...View the full answer
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