Question
Lan won a lottery that would pay him $47,000 in 3 years and $15,500 in 4 years. The lottery company had another option where he
Lan won a lottery that would pay him $47,000 in 3 years and $15,500 in 4 years. The lottery company had another option where he could get an upfront amount now and another $6,300 in 1 years.
Calculate the upfront amount that he would receive now from the second option, assuming that money is worth 3.00% compounded semi-annually?
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To compare these two options it is necessary to calculate their present values using the specified i...
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
