Question
Fortunately, you have noticed that you win Lucky Lottery this week! However, Lucky Lottery says that it will give you cash of $ 1,250,000 after
Fortunately, you have noticed that you win Lucky Lottery this week! However, Lucky Lottery says that it will give you cash of $ 1,250,000 after 10 years. One of your friends, Kim, asks you to sell your winners right for $ 300,000 today. Assuming the annual interest rate is 15%, what is the present value of your winning rewards and will you sell your right to Kim?
I. | $ 268,679; No do not sell the right to Kim | |
II. | $ 268,679; Yes sell the right to Kim | |
III. | $ 308,981; Yes sell the right to Kim | |
IV. | $ 355,328; No do not sell the right to Kim | |
V. | $ 308,981; No do not sell the right to Kim |
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