Question: For less than a dollar a day, Jerri can join a fitness club. She could pay a lump sum of $713.37 when she joins, or

For less than a dollar a day, Jerri can join a fitness club. She could pay a lump sum of $713.37 when she joins, or she can pay $33.87 at the end of each month for twenty-four months. Interest is 10.1% compounded monthly. Should Jerri

pay a lump sum or use the monthly payment feature? Compute the present value of each alternative and determine the preferred alternative according to the discounted cash flow criterion.

The present value of the lump sum is_____ $

(Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)

The present value of the monthly payment feature is_____ $

jerri should use the monthly payment feature or pay the lump sum

(Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)

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