Question
You just won the Florida lottery. To receive your winnings, you must select ONE of the two following choices: 1. You can receive $2,000,000 a
You just won the Florida lottery. To receive your winnings, you must select ONE of the two
following choices:
1. You can receive $2,000,000 a year at the end of each of the next 30 years.
2. You can receive a one-time payment of $16,000,000 today.
Assume that the current interest rate is 7%. Which option is most valuable?
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The annuity option receiving 2000000 a year for 30 years is the more valuable option even considerin...
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Calculus And Its Applications
Authors: Larry Goldstein, David Lay, David Schneider, Nakhle Asmar
14th Edition
0134437772, 9780134437774
