Jane is purchasing a membership in a fitness centre. She can pay either $430 now or pay $250 now, $150 in eight months, and $110 in fifteen months. Which option is better if money is worth 5.9% compounded monthly? Which choice is better? OA. The choice of $430 now is better. OB. They are equal in value. OC. The choice of $250 now, $150 in 8 months and $110 in 15 months is better. The better choice is better 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.)
Jane is purchasing a membership in a fitness centre. She can pay either $430 now or pay $250 now, $150 in eight months, and $110 in fifteen months. Which option is better if money is worth 5.9% compounded monthly? Which choice is better? OA. The choice of $430 now is better. OB. They are equal in value. OC. The choice of $250 now, $150 in 8 months and $110 in 15 months is better. The better choice is better 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.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:12. Jane is purchasing a membership in a fitness centre. She can pay either $430 now or pay $250 now, $150 in eight months, and $110
in fifteen months. Which option is better if money is worth 5.9% compounded monthly?
Which choice is better?
OA. The choice of $430 now is better.
OB. They are equal in value.
OC. The choice of $250 now, $150 in 8 months and $110 in 15 months is better.
The better choice is better 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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