Question: 1. (a) Present value: Thang needs to decide whether to accept a bonus of $1900 today or wait 2 years and receive $2100 then. She

1. (a) Present value: Thang needs to decide whether to accept a bonus of $1900 today or wait 2 years and receive $2100 then. She can invest at 6 percent per annum. What should she do?

(b) Multiple compounding periods: Kylie wants to invest some money so she can collect $5500 at the end of 3 years. Which investment should she make given the following choices?

(1) 4.2 percent compounded daily or (2) 4.9 percent compounded monthly

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