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edehghany edehghany
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A year ago
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
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
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majudomminickmajudomminick
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A year ago
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edehghany Author
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A year ago
Thank you, thank you, thank you!
2ne1_12345
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Yesterday
Correct Slight Smile TY
riptide
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2 hours ago
Thanks
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