# Math Help - Finance question about cash or installment options

1. ## Finance question about cash or installment options

Hello everyone,

I have the answer for this problem, but I am trying to figure out how to come to this solution. Can anyone help? Thank you in advance for your help!

Adana Corporation is interested in buying a building for $500,000 in cash, or it may pay for it in 50 monthly installments of$12,000 each. If the cost of capital for Adana is 9%, which method should it use?
[Present Value of installments $498,797 (cheaper option) ] 2. Are you asking HOW is the$498,797 calculated?
If so, google "present value of annuity".