Question
19. Which of the following decisions would involve the use of the present value of RM1? A) Your brother buys your car and offers to
19. Which of the following decisions would involve the use of the present value of RM1?
A) Your brother buys your car and offers to pay you RM500 per year for three years or RM1,500 in two years.
B) You win a lawsuit and are offered a lump-sum payment today of RM100,000 or RM15,000 a year for 20 years.
C) Your father and mother wish to deposit enough money on the date of your high school graduation to enable you to take a RM7,000 cruise when you graduate from college in 4 years.
D) You want to have RM1,000,000 in order to retire at age 55, but need to know how much you will need to deposit each year from now until your 55th birthday.
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