Jill has to decide between receiving either a) $12,000 now or b) $15,000 five years later. If the annual compound interest on investment is 6 ¾ %, what would be her best choice?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 22P
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Jill has to decide between receiving either a) $12,000 now or b) $15,000 five years later. If the annual compound interest on investment is 6 ¾ %, what would be her best choice?

                        (please base your answer on a calculation on the workout sheet)

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