Question
1. Keenan has won the lottery for $20 million. He is offered a cash payment now of $15 million, or 10 annual payments of $2
1. Keenan has won the lottery for $20 million. He is offered a cash payment now of $15 million, or 10 annual payments of $2 million.
a. What is the interest rate that makes these two amounts equal?
b. If you can invest at 8% how much would you have after 20 years if you invested the $1,000,000?
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Forest Resource Economics And Finance
Authors: W. David Klemperer
1st Edition
0974021105, 978-0974021102
