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I ' m mostly just wondering how I ' m supposed to do part a ) , but help with all parts will be great
Im mostly just wondering how Im supposed to do part a but help with all parts will be great as well!
You have just won the lottery and you can choose between the following payout options. The annual interest rate
EAR is
a $ right now and $ every two years starting years from now and ending years from now ie
payments are at
b $ a year for years with the first payment one year from today ie payments are at
c annual payments of $ and a th payment of $ The first payment is made right now, and the
$ payment is made two years after the last $ payment.
How much more is the best option worth today relative to the worst option?
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