Won 100 million dollars in a lottery that pays installments

Reference no: EM13881679

Won 100 million dollars in a lottery that pays installments of 20 million dollars a year for five years or a lump sum of less than 100 million dollars. If I take the installments, my first installment would come the day I claimed my winnings at the state lottery office. If I take the lump sum, I would receive that payment the day I claimed my winnings at the state lottery office. Assume that the interest rate is 5% per year. Calculate what lump sum should be so it would equal the stream of installments. show and explain work to be given credit.

How would your answer change if the first installment did not come until one year after claimed my winnings

Reference no: EM13881679

Questions Cloud

The following amounts have been determined : At the beginning of 2011, Metatec Inc. acquired Ellison Technology Corporation for $600 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired:

What right do the women claim for refuge in argos? : What right do the women claim for refuge in Argos?

Paper- individual freedom in rural communities : This is a movie that deals with two different cultures. urban and rural You will note the differences are too strong and should be able to compare the two with your own cultural experience here. Some planning issues are Neighborhood / Community en..

Mole of methyl chloride vapor : One gram-mole of methyl chloride vapor is contained in a vessel at 100°C and 10atm. (a) Use the ideal gas equation of state to estimate the system volume.

Won 100 million dollars in a lottery that pays installments : Won 100 million dollars in a lottery that pays installments of 20 million dollars a year for five years or a lump sum of less than 100 million dollars. If I take the installments, my first installment would come the day I claimed my winnings at the s..

Show that if q is a normal good for every consumer : Show that if q is a normal good for every consumer, the market demand for q will be negatively sloped with respect to its own price

Safe and secure packet transmission : Write about the advantages and disadvantages when the streaming stored audio runs over UDP protocol in 1 to 2 page along with references.Explain the given statement "TCP is generally used for safe and secure packet transmission."

Mc(quantity) is non-decreasing : How is the Price in a Monopoly (Pm(1 + 1/E(P)) = MC(D(Pm)) greater than the Price in a Competitive Market (Pc = MC(D(Pc)), assuming the demand function is downward sloping and that MC(Quantity) is non-decreasing?

How do you interpret the two regressions : Can you relate the slopes and intercepts of the two models and Can you compare the R2 values of the two models? Why or why not?

User Account

All Pages