# Question

You have just won the lottery. You will receive $1,000,000 today, and then receive 40 payments of $500,000. These payments will start one year from now and will be paid every six months. A representative from Greenleaf Investments has offered to purchase all the payments from you for $10 million. If the appropriate interest rate is 8.9% APR compounded daily, should you take the offer. Assume there are 12 months in a year, each with 30 days.

What is the effective six-month interest for 8.9% APR compounded daily?

A. 4.54%

B. 4.5%

C. 9%

D. 9.08%

What is the effective six-month interest for 8.9% APR compounded daily?

A. 4.54%

B. 4.5%

C. 9%

D. 9.08%

## Answer to relevant Questions

Compute the cost of the cash discount based on the three policies under consideration. Recall the total credit sales were $18 million. Multiply total credit sales times the percent that use the discount for each new discount ...Eight years from now you will begin to receive cash flows of $5,000 per year. These cash flows will continue for twenty years. If the discount rate is 8%, what is the present value (today) of these cash flows?Heymann Company bonds have 4 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 9%.a. What is the yield to maturity at a current market price of (1) $829 and (2) ...Company GLM produces a product that consists of two parts. The first part is produced by a subsidiary in country A at $5 per unit. The second part is being produced by another subsidiary in country B at $7 per unit. They are ...1. What is the use of proceeds?2. What is the coupon rate?3. How much will Intel be paying in total interest semi-annually and annually?4. What is the effect on the TIE ratio? Use the latest quarterly statements.5. What is ...Post your question

0