Question
You just won the lottery. You have the option of receiving $50,000 at the beginning of every year for the next 10 years OR receiving
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You just won the lottery. You have the option of receiving $50,000 at the beginning of every year for the next 10 years OR receiving a lump sum award today. Suppose your required rate of return is 6.5%. If you were to be indifferent between the two options, how much should the lump sum award be?
$382,805.21
$674,721.13
$500,000.00
$359,441.51
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Management Of Islamic Finance
Authors: M. Kabir Hassan, Mamunur Rashid
1st Edition
1787564045, 978-1787564046
