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If you win the lottery and can choose $10,000 today or $2,000 at the end of each year for 6 years, which would you choose?
If you win the lottery and can choose $10,000 today or $2,000 at the end of each year for 6 years, which would you choose? Consider only the value of the options in your analysis Use an interest rate of 6%.
a. Take the 2,000 for 6 years b/c it is worth 12,000 in today's dollars
b. None of the choices are correct
c. Take the 10,000 today because it is worth more than 2,000 spread over 6 years
d. Take the 2,000 for 6 years because it is worth 10,484 in todays dollars
e. Take the 2,000 for 6 years because it is worth 10,316 in todays dollars
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