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Crissie just won the lottery, and she must choose among three award options. She can elect (A) to receive a lump sum today of $300,000,
Crissie just won the lottery, and she must choose among three award options. She can elect (A) to receive a lump sum today of $300,000, (B) to receive 10 end-of-year payments of $45,000, or (C) to receive 30 end-of-year payments of $20,000. If she expects to earn 16% annually, which option would you recommend? Option A Option B Option C Pick any option! Jan sold her house on December 31 and took a $100,000 mortgage as part of the payment. The 20-year mortgage has a 8% nominal interest rate, but it calls for semiannual payments beginning next June 30. Next year Jan must report on Schedule B of her IRS Form 1040 the amount of interest that was included in the two payments she received during the year. How much interest must Jan report on Schedule B for the first year? $3957.91 $8,000.00 $4,000.00 $7957.91
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