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Question 1 Since she is moving to Bali after retirement, Ranjeeta decides to sell her house in Malaysia. The buyer is willing to pay RM300,400
Question 1 Since she is moving to Bali after retirement, Ranjeeta decides to sell her house in Malaysia. The buyer is willing to pay RM300,400 today or alternatively he can pay RM60,000 in the first year, RM50,000 for the subsequent 4 years, and RM40,400 in the final year. These payments will be made at the beginning of each year. Ranjeeta is retiring in 6 years time. Because Ranjeeta does not really need the money today, she decides to let the payment(s) accumulate in a retirement account that earns 6% annual return. Which method of payment should she choose in order to get the highest value in her retirement account at the time of her retirement? Draw the timeline
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