Question

Florence can pay her golf membership dues with a single payment of $1500 at the beginning of the year or by paying $770 at the beginning of the year and $810 six months later. What option is to her advantage if she can earn 7% compounded queaterly on short-term loans?

Answer 1

I picked "now" as my time reference point on my time graph.

1500 vs 770 + 810(1.0175)^-2
$1500 vs $155238

What do you think?