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 81 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
YES! Correct, THANKS for helping me on my review

AISCAMPING

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

A study by Seehausen and van Alphen involving the effects of male coloration on female choice in Afr A study by Seehausen and van Alphen involving the effects of male coloration on female choice in Afr
Time Slows Down Near Matter Time Slows Down Near Matter
The first commercially successful typewriter, manufactured in quantity beginning in 1874, surely fue The first commercially successful typewriter, manufactured in quantity beginning in 1874, surely fue
Student opening present Student opening present
Mirror recognition and self-naming develop at almost exactly the same time Mirror recognition and self-naming develop at almost exactly the same time
A time map of the genes studied in the experiment A time map of the genes studied in the experiment
Video: Causes of Acne

For a complete list of videos, visit our video library