Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you won a lottery. there are two payment options:

You won a lottery. There are two payment options: either you get $10,000 immediately, or...

80.2K

Verified Solution

Question

Finance

You won a lottery. There are two payment options: either you get $10,000 immediately, or you can receive $12,000 two years later. If your savings account provides a 6% annual rate compounded monthly, which alternative should you choose? There is no default risk and use monthly interest rate of 6%/12 =0.5%

Please list all steps used.

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Kim Mitchell, the new credit manager of the Vinson Corporation, was alarmed to find that Vinson...

Finance
Q

Perform the appropriate calculation to determine the theoretical pH of the buffer solution after 10 drops...

Chemistry
Q

Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed...

Finance
Q

Sketch the following region and write an iterated integral of a continuous function f over...

Calculus
Q

TABLE OF INDEFINITE INTEGRALS fcf x dx cff x dx fkdx dx kx C fxndx...

Calculus
Q

Question What is the net signed area between f x 2x 2 and the x...

Calculus
Q

257 rvey City Comprehensive Case Special Remedand prepare final GENERAL FUND REQUIREMENTS 20x4 transactions and...

Accounting
Q

Use the graph to estimate the total number of doctoral degrees awarded to women from...

Accounting
Q

Exercise 1-17 (Algo) Reporting cash flows and determining effects LO P2 For each transaction, (a)...

Accounting
Q

Adjective Agreement Make the given adjective agree with the nouns. MODELO: ellas/impulsivo impulsivas 1....

Accounting
Q

On October 1,20xx, Santana Rey launched a computer services company called DWW & Friends, which...

Accounting
Q

MINI-CASE-K15.78N10.24 The K15.78N Company uses only equity in its capital structure. The Financial Manager of...

Accounting