Question

a)Abbas have won a cash prize in marathon competition and are offered two options of payment; either to receive RM10,000.00 now OR receive RM5,000.00 now plus RM5,000.00 at the beginning of second year. By applying the Time Value of Money concept, which option should Abbas choose? Why? Assume the interest rate is 3%.

Answer 1

Answer:

10000 is that amount he choose when he had some problem of money