Question
Devin won the lottery however, the lottery company gave him the following two options to receive his prize money option (a) $8,000 in two months
Devin won the lottery however, the lottery company gave him the following two options to receive his prize money option (a) $8,000 in two months and $14,000 in eight months option (b) $4,000 immediately and $20,000 in ten months assume that money earns 35 pa simple interest and use today as the focal date a what was the equivalent value of the payments under option (a) at the focal date $000 round to the nearest cent b what was the equivalent value of the payments under option (b) What was the equivalent value of the payments under option (b) at the focal date?
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Accounting Principles
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
7th Canadian Edition Volume 1
1119048508, 978-1119048503
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