If a lottery offers a one-time payment of $1 million immediately or payments of $100 000 at

Question:

If a lottery offers a one-time payment of $1 million immediately or payments of $100 000 at the end of each year for 20 years which offer is preferable if interest is 10% per annum?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

See More Books

Question Posted: Feb 26, 2016 04:18 AM

See More Questions

In 2012, the Campbell Soup Company acquired Bolthouse Farms for $ 1.55 billion. This acquisition increased the level of vertical integration in Campbell, as Bolthouse Farms owned and operated...
Simes Innovations, Inc., is negotiating to purchase exclusive rights to manufacture and market a solar-powered toy car. The cars inventor has offered Simes the choice of either a one-time payment of...
Santini Construction is evaluating a project to build a bridge over the Salmon River. The project is currently worth $14 million. In one year, when the construction is 30% complete, there will be a...
For the year ending December 31, Orion, Inc. mistakenly omitted adjusting entries for $1,500 of supplies that were used, (2) unearned revenue of $4,200 that was earned, and (3) insurance of $5,000...
A farmer is concerned that a change in fertilizer to an organic variant might change his crop yield. He subdivides 6 lots and uses the old fertilizer on one-half of each lot and the new fertilizer on...
The following information (in millions of dollars) is available for Ayayai Sportswear for 2022: Sales revenue $6,000 Net income $528.0 Stock price per share $18.00 Preferred stock dividend $0 Average...
Find the force components $F_{x}$ and $F_{y}$ required to hold the box shown in Fig. P5.35 stationary. The fluid is oil and has specific gravity of 0.85. Neglect gravity effects. Atmospheric...
Assume that you own 600 shares of common stock of a company, that you have been receiving cash dividends of $6 per share per year, and that the company has a 4-for-3 stock split. Required: a. How...
The electric field in a particular space is E = (x + 2)1 N/C, with x in meters. Consider a cylindrical Gaussian surface of radius 39 cm that is coaxial with the x axis. One end of the cylinder is at...
North American lake system. Consider the American system of two lakes: Lake Erie feeding into Lake Ontario. What is of interest is how the pollution concentrations change in the lakes over time. You...
Using an 8% interest rate, calculate the accumulated value if Jason invests half of his winnings at the end of every month for 15 years. Assume interest is compounded quarterly.
Replacing old equipment at an immediate cost of $50 000 and an additional outlay of $30000 6 years from now will result in savings of $3000 per quarter for 12 years. The required rate of return is...
The equation has exactly one solution. a. Find the value of k. b. State the solution to the equation. 16 - x| = x + k 2
Janelle was hoping to find a bank that offers totally free checking, but that is proving to be difficult. She works hard to earn her money, and she doesn't want to spend it on fees. Some accounts...
A compaSelect all that apply In accounting for a foreign currency borrowing, both the note payable and any accrued interest payable on the note are Multiple select question. revalued for changes in...
A pharmacist needs to weight 0.02 grams of tretinoin to compound a cream. The balance to be used has a sensitivity requirement of 0.015g and an acceptable error of no greater than 5%. The pharmacist...
Enter the following 2023 transactions in the T-accounts (Enter zero for entries with no beginning balance): Provided $58,000 in services to clients; received $48,000 in cash and the rest on account....
Select all that apply When only the spot component of a forward contract is designated as the hedging instrument, the forward points may be recognized in net income Multiple select question. based on...
The average speed s of oxygen molecules in the air is directly proportional to the square root of the absolute temperature T. If the speed of the molecules is 460 m/s at 273 K, what is the speed at...
The figure shows a bolted lap joint that uses SAE grade 8 bolts. The members are made of cold-drawn AISI 1040 steel. Find the safe tensile shear load F that can be applied to this connection if the...
Problems 29-50 are mixed - some may require use of the integration-by-parts formula along with techniques we have considered earlier; others may require repeated use of the integration - by - parts...
Problems 29-50 are mixed - some may require use of the integration-by-parts formula along with techniques we have considered earlier; others may require repeated use of the integration - by - parts...
In Problems 51-54, use a graphing calculator to graph each equation over the indicated interval and find the area between the curve and these axis over that interval. Find answers to two decimal...
World Tourism Day 2 0 1 7 , with its official celebration on September 2 7 in Qatar, was focused on sustainable tourism. Established by the United Nations World Tourism Organization ( UNWTO ) , World...
Tracy is single and had adjusted gross income of $35,800 in 2018. Tracy also has the following items: How much may Tracy claim as itemized deductions?
Calculate the geometric mean return of an investment with five year returns of 10%, (15%), 12%, 8% and (5%).

If a lottery offers a one-time payment of $1 million immediately or payments of $100 000 at

Question:

Step by Step Answer:

PMT 100 000 n 201 PY 1 CY 1 IY 10 PV PMT 1 1 i n ...View the full answer

Contemporary Business Mathematics with Canadian Applications

Students also viewed these Finance questions