Lan won a lottery that would pay him $47,000 in 3 years and $15,500 in 4 years.

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

Question:

Lan won a lottery that would pay him $47,000 in 3 years and $15,500 in 4 years. The lottery company had another option where he could get an upfront amount now and another $6,300 in 1 years.

Calculate the upfront amount that he would receive now from the second option, assuming that money is worth 3.00% compounded semi-annually?

Related Book For answer-question

Intermediate Microeconomics

ISBN: 978-0393123968

9th edition

Authors: Hal R. Varian

See More Books

Posted Date: Apr 28, 2023 07:23 AM

See More Questions

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Ultimate Consulting is a management consulting firm that offers a wide range of services to companies in many industries. To stay on the cutting edge of developments in the business world and to...
Special Alloys Corporation manufactures a variety of specialized metal products for industrial use. Most of the revenues are generated by large contracts with companies that have government defense...
Draw a basic cambered airfoil and label the chord line, relative wind, AOA, stagnation point, lift vector, and weight vector.
What is an external stakeholder? Provide an example of a situation where pressure from external stakeholders has pushed managers to engage with environmental issues.
The information in Table is available for a large fund raising project. a. Determine the critical path and the expected completion time of the project. b. Plot the total project cost, starting from...
1. Abond with face value of $1,000 and a 7.25% coupon matures in 5 years and is currently selling at 109. Your discount rate is 8%. Determine the value of the bond to you.Show answer to 2-decimal...
Consider that the BOP working pressure of 5,000 psi was selected. For the selection, the drilling engineer assumed the well full of gas at an anticipated depth of 10,000 ft, gas gradient equal to 0.1...
When using the LWQ method, a pharmacist needs to obtain 60 mg of a drug using a balance that has a MWQ of 120 mg. If the desired quantity of drug is to be contained in a mixture mass of 150 for the...
While in the process of moving, you attempt to push a 15 kg box across your horizontal floor. The coefficient of static friction and kinetic friction between the box and the floor is s = 0.8 and k =...
A refrigerator used by a wholesale warehouse has a cost of $66,700, an estimated residual value of $5,100, and an estimated useful life of 14 years. What is the amount of the annual depreciation...
Modify This Project to Do the Following Modifications: Check the following: (Using while statement to prompt user to Continue (Y/N) public static String answer = "Y"; // Added by Instructor public...
(b) The weight of the car shown in Figure Q2(a) is 9.8 kN when it is fully loaded by passengers and 2.4 kN when it is empty. The effective spring constant is given as 2.5 kN/m and the damping...
Problem 4 (Binary/N-ary Tree) After a hectic week at work,Mancunian and Liverbirddecide to go on a fun weekend camping trip. As they were passing through a forest, they stumbled upon a unique tree of...
Explain the various purposes of embedded systems in detail with illustrative examples. Explain the different classifications of embedded systems. Explain the relationship between embedded systems and...
Create an appropriate display of the navel data collected in Exercise 25 of Section 3.1. Discuss any special properties of this distribution. Exercise 25 The navel ratio is defined to be a persons...
Sam Hitchem owns the dance hall in Lonely Pine, Wisconsin. He holds a dance every week. This dance hall is one of the few suitable locations in the county for unattached men and women to meet each...
This problem (and the two that follow) concerns collusion among bidders in sealed-bid auctions. Many writers have found evidence that collusive bidding occurs. The common name for a group that...
Albatross Airlines has a monopoly on air travel between Peoria and Dubuque. If Albatross makes one trip in each direction per day, the demand schedule for round trips is q = 1602p, where q is the...
What is the File Drawer Problem?
What is evidence-based medicine?
What is a forest plot?

Lan won a lottery that would pay him $47,000 in 3 years and $15,500 in 4 years.

Question:

Expert Answer:

To compare these two options it is necessary to calculate their present values using the specified i... View the full answer

Intermediate Microeconomics

Students also viewed these finance questions