This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Using Present ValueYou win the lottery and are given the choice to receive a one-time lump-sum ... (Read 28 times)

jrobl3

  • Full Member
  • ***
  • Posts: 167
on: Nov 23, 2022
Using Present Value

You win the lottery and are given the choice to receive a one-time lump-sum payment of $11.25 million now or 5 annual payments of $2.25 million starting today. Assume the interest rate is equal to 2.75%, what is the present value of the annual payments? Which option results in the highest payout? Please round your answer to two decimal places.
◦ $10.66 million, 5 annual payments
◦ $8.41 million, 5 annual payments
◦ $10.66 million, lump-sum payment
◦ $8.41 million, lump-sum payment
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jrobl3 on Nov 23, 2022

athenaheim

  • Full Member
  • ***
  • Posts: 189
Reply #1 on: Nov 23, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 32% of students answer this correctly


jrobl3

  • Member
  • Posts: 167
Reply 2 on: Nov 23, 2022
Excellent

yeungji

  • Member
  • Posts: 319
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Evolution of the Sun's luminosity, radius and effective temperature compared to the present Sun Evolution of the Sun's luminosity, radius and effective temperature compared to the present Sun
Time course and phases of a nerve cell going from resting potential to action potential Time course and phases of a nerve cell going from resting potential to action potential
Under what conditions can part-time employment in high school be a negative influence on school ... Under what conditions can part-time employment in high school be a negative influence on school ...
Men and women work the same number of hours a week, but men spend more time on paid work, and women ... Men and women work the same number of hours a week, but men spend more time on paid work, and women ...
Average real hourly wages (2010 dollars) by education level, full-time workers aged 17 to 34 in 2011 Average real hourly wages (2010 dollars) by education level, full-time workers aged 17 to 34 in 2011
Over time, cells acquire mutations. Two independently acquired mutations in the same cell may be suf Over time, cells acquire mutations. Two independently acquired mutations in the same cell may be suf
Video: The Hypothalamus: The Body's Thermostat (Human Thermostat)

For a complete list of videos, visit our video library