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Business, 19.03.2021 18:10 sarahgrindstaff123

You won the lottery and may choose between Prize 1, which would pay you $50,000 today and $200,000 at the end of 10 years OR receive $50,000 today plus some annuity at the end of each year for 10 years. Using an interest rate of 5%, which of the following comes closest to the annuity that will make the present value of both prizes the same? a. $172,782.65.
b. $38,431.68.
c. $122,782.65.
d. $15,900.91.

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You won the lottery and may choose between Prize 1, which would pay you $50,000 today and $200,000 a...

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