Multiple Choice
A house is on sale in Markham. Marlene has an option to pay $575 000 lump sum or pay $6000 at the end of every month for the next 10 years. If money earns 5% compounded monthly, which option has a better economic advantage?
A) Paying monthly has an advantage of $9312 in PV
B) Paying lump sum has an advantage of $9312 in PV
C) Paying monthly has an advantage of $85 129 in PV
D) Paying lump sum has an advantage of $85 129 in PV
E) Both options are the same. Choose any.
Correct Answer:
Verified
Correct Answer:
Verified
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