The winner of a multistate mega millions lottery jackpot worth $175 million was given the option of
Question:
The winner of a multistate mega millions lottery jackpot worth $175 million was given the option of taking payments of $7 million per year for 25 years, beginning 1 year from now, or taking $109.355 million now. The interest rate that renders the two options equivalent to each other is closest to:
(a) 4%
(b) 5%
(c) 6%
(d) 7%
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 72% (11 reviews)
a 109355 ...View the full answer
Answered By
AJIN kuriakose
I have completed B.Tech in Electrical Engineering & Masters in Power & Control From one of the best universities in India. I got the 99.05 percentile in the Gate Electrical Engineering Exam. I can Help students solving assignments in Electrical subjects like Power Electronics, Control system, Analog, Network Theory & Engineering Mathematics. Clear your fundamentals and develop problem-solving skills and analytical skills to crack the exam.
Get guidance and the opportunity to learn from experienced...
I can provide tuition for Electrical engineering subjects (Power Electronics, Digital electronics, Network Theory, Control System & Engineering Mathematics). The toughest subject of Electrical engineering can be made simple in online classes...
I can also solve it.
1 .I can help you with your assignments or exams or quiz or tutoring.
2. Very strict to the deadlines.
Message me for any help in assignments, live sessions. I am here to help students for all assignments, tests and exams and I will make sure you always get _95% In your subject.
Contact me in solution inn for any help in your semester, projects and for many more things . Also feel free to contact me through solution inn and for any advise related to tutoring and how it works here.thank you.
5.00+
5+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
The winner of a state lottery will receive $5,000 per week for the rest of her life. If the winners interest rate is 6.5% per year compounded weekly, what is the present worth of this jackpot?
-
Recently, some lucky person won the lottery. The lottery winnings were reported to be $85.5 million. In reality, the winner got a choice of $2.85 million per year for 30 years or $46 million today....
-
In Virginia's six-number lottery (or lotto) players pick six numbers from 1 to 44. The winning combination is determined by a machine that looks like a popcorn machine, except that it is filled with...
-
According to a recent study, the IT strategic role that has the greatest impact on shareholder value is: a. informate. b. digitize. c. automate. d. transform.
-
Portions of the salaries expense account of a business follow: a. Indicate the nature of the entry (payment, adjusting, closing, reversing) from which each numbered posting was made. b. Journalize...
-
Consider the report in Figure 4-12 in the context of information as a difference that makes a difference. What differences does the structure of this report show? (a)Describe five ways this report...
-
In what situations might an independent accountant review interim financial information?
-
An ad agency tracks the complaints, by week received, about the billboards in its city: Week No. of Complaints 1........... 4 2........... 5 3........... 4 4...........11 5........... 3 6..............
-
12. The amount of kinetic energy an object has depends on what? 13. What is the acceleration of a train that starts from rest and reaches the speed of 105m/s in 30.0 seconds? 14. The speed of a car...
-
A compound with molecular formula C 8 H 10 O produces six signals in its 13 C NMR spectrum and exhibits the following 1 H NMR spectrum. Deduce the structure of the compound. Proton NMR Chemical Shift...
-
Calculate the labor cost percent of total revenue. A. 2.3% B. 1.23% C. 12.3% D. 23%
-
Zero-based budgeting is used to develop capital budgets in a hospital. The director of Food and Nutrition wants to request a blast chiller. Which of the following is the best quantifiable evidence to...
-
To test if a query specified in English has been correctly written in SQL, the SQL query is typically executed on multiple test databases, and a human checks if the SQL query result on each test...
-
Explain and write how heap sort works with a suitable algorithm?
-
Write a C-program for sorting integers in ascending order using insertion sort.
-
List all types of sorting techniques? Give the advantage of merge sort?
-
Write advantages and disadvantages of the bubble sort with performance analysis of the Bubble sort?
-
Implement and write the bubble sort algorithm?
-
If the fed funds rate is at zero, the Fed can no longer implement effective accommodative policy. Is this statement true, false, or uncertain? Explain.
-
State whether each statement is true or false. If false, give a reason. {purple, green, yellow} = {green, pink, yellow}
-
The Department of Defense uses area cost factors (ACFs) to adjust for differences in construction costs in different parts of the country (and world). The area cost factor for Andros Island in the...
-
Preliminary cost estimates for jails can be made using costs based on either unit area (square feet) or unit volume (cubic feet). If the unit area cost is $185 per square foot and the average height...
-
Electropneumatic general-purpose pressure transducers convert supply pressure to regulated output pressure in direct proportion to an electrical input signal. The cost of a certain transducer was...
-
Suppose you bought a new home for $210,000 using a 30-year mortgage with monthly payments of $1,218.841. The annual interest rate of the mortgage is 5.7%. After the first 3 years (36 monthly...
-
Rather than use the hypothetical information above, determine from available news sources if the Fed is increasing, holding steady, or decreasing interest rates. Similarly, is the Federal Government...
-
For a two-sided matching problem, we say that matching is Pareto efficient, if there is no matching ', such that and '(x) R (x) for all x WUF, '(x) Px (x) for some x WUF. Show that stability implies...
Study smarter with the SolutionInn App