You win a lottery. Your prize is either two annual payments of $50,000 at the end of
Question:
You win a lottery. Your prize is either two annual payments of $50,000 at the end of each year or a lump-sum payment of $87,000 today. You expect the rate of inflation to be 5% and the real interest rate to be 4%. Which prize has a higher present value?
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The present value of the lumps...View the full answer
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Sumit kumar
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QUATERNARY Pursuing M.Tech.(2017-2019) in Electronics and Communication Engg. (VLSI DESIGN) from
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TERTIARY B.Tech. (2012-2016) in Electronics and Communication Engg. from GLBITM Greater Noida
SECONDARY Senior Secondary School Examination (Class XII) in 2012 from R.S.S.Inter College, Noida
ELEMENTARY Secondary School Examination (Class X) in 2010 from New R.J.C. Public School ,Noida
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