If a lottery offers a one-time payment of $1 million immediately or payments of $100 000 at

Question:

If a lottery offers a one-time payment of $1 million immediately or payments of $100 000 at the end of each year for 20 years which offer is preferable if interest is 10% per annum?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

See More Books

Question Posted: Sep 21, 2024 05:20 AM

See More Questions

Beth Johnson takes out a 30-year, $575,000 mortgage at 2.99%. Mortgage payments are due at the end of each month, starting with the first month. What is the amount of each mortgage payment? What is...
On February 20, 2006, Genoa Mining Company incurred costs of $3,600,000 to acquire and prepare to extract an estimated 4,000,000 tons of mineral deposits. 450,000 tons of ore were mined in 2006. At...
A small block of mass m1 rests on a piston that is vibrating vertically with simple harmonic motion given by y = A sin wt. (a) Show that the block will leave the piston if w2A > g. (b) If w2A = 3g...
If a lottery offers a one-time payment of $1 million immediately or payments of $100 000 at the end of each year for 20 years which offer is preferable if interest is 10% per annum?
Using the formula for productivity, (outputs)/(inputs), what are all the ways that productivity can be increased?
A certificate of deposit (CD) for two years will have the same yield as a CD for one year followed by an investment in another one-year CD after one year. True False The yield on a one-year Treasury...
Using an 8% interest rate, calculate the accumulated value if Jason invests half of his winnings at the end of every month for 15 years. Assume interest is compounded quarterly.
Replacing old equipment at an immediate cost of $50 000 and an additional outlay of $30000 6 years from now will result in savings of $3000 per quarter for 12 years. The required rate of return is...
TentRentals Company sets up a large event tent for the local food festival. The tent will be rented to the Business Improvement Association for 2 weeks for a total cost of $3,500. The event takes...
A single facility is needed to meet the demands of four markets. The locations and demands of these four markets are shown below. Market Coordinates Demand A ( 8 , 6 ) 1 0 B ( 4 , 1 2 ) 1 5 C ( 3 , 2...
EGR ratio=(EGR mass flow rate)/(intake mass flow rate) is equal to (intake CO2 concentration (ppm))/(exhaust CO2 concentration (ppm)) how they both can be considered equal? any assumptions?
PYTHON Code I am having so much many problems with this problem. Please show me how to code this using a dummy dataset with the same feature names as mine 1) Using PYTHON code report the number of...
Find the surface area revolution about the x-axis for y = x^2 over the interval [0,4]
5 14.28 points Book Print Heferences Brief Exercise 11-4 (Algo) Assessing the magnitude of operating leverage LO 11-4 The following income statement relates to Riley Company for the year. Sales...
The three-dimensional motion of a particle is defined by the cylindrical coordinates (see Fig. 11.26) ( R = A / t + 1), = Bt, and z = Ct / (t + 1). Determine the magnitudes of the velocity and...
Show that the peak of the black body spectrum as a function of ? is given by eq. (22.14) kg T Wmax = 2.82
Explain the transaction approach to measuring income. Why is the transaction approach to income measurement preferable to other ways of measuring income?
What is earnings management?
How can earnings management affect the quality of earnings?
What level of sales are required to earn a target after-tax net income of $73000 if total fixed costs are $109000, the contribution margin ratio is 30%, and the tax rate is 20%? $1580000 $5840000...
Required information [The following information applies to the questions displayed below] The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of...
Coronado Company has the following equivalent units of production for July: materials 27750 and conversion costs 22500. Production cost data are: Materials Conversion Work in process, $6500 $4000...

If a lottery offers a one-time payment of $1 million immediately or payments of $100 000 at

Question:

Step by Step Answer:

PMT 100000 n 201PY 1 CY 1IY 10 PV PMT1 1 i n i ...View the full answer

Contemporary Business Mathematics with Canadian Applications

Students also viewed these Finance questions