You have the choice of receiving $60,000 now, or $21,000 now and another $42,000 two years...
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You have the choice of receiving $60,000 now, or $21,000 now and another $42,000 two years from now. In terms of today's dollar, which choice is better and by how much? Money is worth 5.2% compounded annually. Which choice is better? OA. The choice of $60,000 now is better. B. They are equal in value. C. The choice of $21,000 now and $42,000 in two years is better. The better choice is greater than the alternative choice by $ in terms of today's dollar. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) You have the choice of receiving $60,000 now, or $21,000 now and another $42,000 two years from now. In terms of today's dollar, which choice is better and by how much? Money is worth 5.2% compounded annually. Which choice is better? OA. The choice of $60,000 now is better. B. They are equal in value. C. The choice of $21,000 now and $42,000 in two years is better. The better choice is greater than the alternative choice by $ in terms of today's dollar. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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To determine which choice is better we need to compare the present values of the two op... View the full answer
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0133052312
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
Posted Date:
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