Eddie wants to cash in his winning lottery ticket. He can either receive ten, $100,000...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Eddie wants to cash in his winning lottery ticket. He can either receive ten, $100,000 semiannual payments starting today, or he can receive a lump-sum payment now based on a 6% annual interest rate. What is the equivalent lump-sum payment? when I plug in the interest rate in the calculator should I put 3% because the payments say they are semi annual? can you also show how reach the final answer using the calculator method (pv= n=)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
