Business, 03.09.2021 23:50, salinasroel22
Your mom is thinking of retiring. Her retirement plan will pay her either immediately on retirement or 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
If the interest rate is 0% per year, the PV of the amount to be received five years after retirement is $.
Which alternative should your mom take in this case?
A. Take the money now b, 8% per year.
B. Wait until 5 years after retirement.
lf the interest rate is 8%, the PV of the amount to be received five years after retirement is $.
Which alternative should your mom take in this case?
A. Take the money now
B. Wait until 5 years after retirement
lf the interest rate is 20%, the PV of the amount to be received five years after retirement is $.
Which alternative should your mom take in this case?
A. Take the money now.
B. Wait until 5 years after retirement.
Answers: 1
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Your mom is thinking of retiring. Her retirement plan will pay her either immediately on retirement...
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