Question
You just won $150,000 in the state lottery. Lottery rules do not allow a lumpsum payment. Instead, the lottery will pay you $5,000 per year
You just won $150,000 in the state lottery. Lottery rules do not allow a lumpsum payment. Instead, the lottery will pay you $5,000 per year for the next 10 years, followed by payments of $10,000 per year for the next ten years. How much are your winnings actually worth? The appropriate interest rate is 8% per year.
are they 2 ordinary annuity?
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
