7. Last night Marion won $5000 in a lottery. She was given two options. She can...

 

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7. Last night Marion won $5000 in a lottery. She was given two options. She can take $5000 today or $X every 6 months (beginning 6 months from now) for 2 years. If the options are equivalent and the simple interest rate is 3%, determine X using a focal date of 2 years. 7. Last night Marion won $5000 in a lottery. She was given two options. She can take $5000 today or $X every 6 months (beginning 6 months from now) for 2 years. If the options are equivalent and the simple interest rate is 3%, determine X using a focal date of 2 years.

Answer rating: 100% (QA)

The premise is that the value of both options as on the focal date ha... View the full answer