Question
1. Graciela Treadwell won a lottery. She will have a choice of receiving $25,000 at the end of each year for the next 30 years,
1. Graciela Treadwell won a lottery. She will have a choice of receiving $25,000 at the end of each year for the next 30 years, or a lump sum today. If she can earn a return of 10 percent on any investment she makes, what is the minimum amount she should be willing to accept today as a lump-sum payment? (Round to the nearest hundred dollars.
| A. | $235,700 |
|
| B.$750,000 |
|
| C.$334,600 |
|
| D.$212,400 |
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Microfinance Handbook An Institutional And Financial Perspective
Authors: Joanna Ledgerwood
1st Edition
0821343068, 978-0821343067
