Business, 19.03.2020 02:31 teagan56

Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a series of payments over time. If you pick the lump sum, you get $2,750 today. If you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today.
1) At an interest rate of 6% per year, the winner would be better off accepting the (lump sum or payments over time), since it has the greater present value.
2) At an interest rate of 9% per year, the winner would be better off accepting (lump sum or payments over time), since it has the greater present value.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 17:40, jjackson0010

Steffi is reviewing various licenses and their uses. match the licenses to their respective uses.

Answers: 3

continue

Business, 23.06.2019 02:30, winterblanco

How is the role of government determined in the american free enterprise system?

Answers: 2

continue

Business, 23.06.2019 06:50, juana18

Jaden has a degree in marketing. she would like to run her department. she is going back to school to get a degree in: a. web designer b. database administrator c. information security d. computer user support

Answers: 1

continue

Business, 23.06.2019 08:00, michellebreshears451

Whom do progressive taxes assess? a. only a large percentage of high-income households b. only a large percentage of organizations c. a large percentage of high-income households and organizations d. a large percentage of low-income households e. a small percentage of high-income households

Answers: 1

continue

You know the right answer?

Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money...