early retirement plan offered by an MNC
There is an early retirement plan offered by a MNC. There are two options for each employee to opt for early retirement. The staff can receive quarterly payment of RM800 each for 3 years, with the first payment made in the first quarter from now or a lump sum from today. Assuming an interest rate of 6% compounded quarterly, what is the lump sum today (present value) that would equal the sum of the future payments to be made?