Did this for Lynda back in December
http://www.jiskha.com/display.cgi?id=1386034705
Richard Simmons is selling his house. He has a choice of taking $125,000 today or $135,000 in 6 months. If he takes the money today, he can invest it at Valley Bank at 5% interest compounded monthly.
a. How much would be in the account after six months if he took the 125,000.
b. Which option should he take?
c. How much more money does he gain in making this choice?
1 answer
1 answer