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4 Your mom is thinking of retiring. Her retirement plan will pay her either $250,000 immediately on retirement or $350,000 five years after the date
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Your mom is thinking of retiring. Her retirement plan will pay her either $250,000 immediately on retirement or $350,000 five years after the date of her retirement. Which alternative should she choose if the interest rate is: a. 0% per year? b. 8% per year? c. 20% per year? a. 0% per year? If the interest rate is 0% per year, the PV of the amount to be received five years after retirement is $ (Round to the nearest dollar.) Which alternative should your mom take in this case? (Select the best choice below.) A. Take the money now. B. Wait until 5 years after retirement. b. 8% per year? If the interest rate is 8%, the PV of the amount to be received five years after retirement is $ (Round to the nearest dollar.) Which alternative should your mom take in this case? (Select the best choice below.) A. Take the money now. B. Wait until 5 years after retirement. c. 20% per year? If the interest rate is 20%, the PV of the amount to be received five years after retirement is $ (Round to the nearest dollar.) Which alternative should your mom take in this case? (Select the best choice below.) A. Take the money now. B. Wait until 5 years after retirementStep by Step Solution
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