annual interest

annual interest
Alisha has just contracted to sell a small parcel of land that she inherited a few years ago. The buyer is willing to pay RM24,000 at the closing of the transaction or will pay the amounts shown in the following table at the beginning of each of the next 5 years. Because Alisya doesn’t really need the money today, she plans to let it accumulate in an account that earns 7% annual interest. Given her desire to buy a house at the end of 5 years after closing on the sale of the lot, she decides to choose the payment alternativeRM24,000 single amount or the mixed stream of payments in the