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You have just won the lottery. The Lottery Corporation offers you two options: a lump-sum payment of $1 million, or an annual installment of $100,000
You have just won the lottery. The Lottery Corporation offers you two options:
- a lump-sum payment of $1 million, or
- an annual installment of $100,000 over the next 15 years.
At what interest rate, r, will you be indifferent between the two options?
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
