Question
You inherit $576,000. You can receive the $576,000 in one lump sum payment today or, alternatively, receive two amounts: $376,000 in 11 months and $220,000
You inherit $576,000. You can receive the $576,000 in one lump sum payment today or, alternatively, receive two amounts: $376,000 in 11 months and $220,000 in 21 months from today. If you can earn 8.9% per annum compounding monthly on your monies, what is the value of the option to receive two payments (in present day value)?
(to nearest whole dollar,; don't use $ sign or commas)
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Mathematical Applications for the Management Life and Social Sciences
Authors: Ronald J. Harshbarger, James J. Reynolds
11th edition
9781337032247, 9781305465183, 1305108043, 1337032247, 1305465180, 978-1305108042
