Multiple Choice
Prizes are often not "worth" as much as claimed.What is the value of a prize of $5,000,000 that is to be received in 20 equal yearly payments,with the first payment beginning today? Assume an interest rate of 7%.
A) $2,833,898.81
B) $2,911,015.68
C) $2,609,144.14
D) $2,738,304.13
Correct Answer:
Verified
Correct Answer:
Verified
Q84: For a given amount,the lower the discount
Q85: Someone offers to buy your car for
Q86: Present values decline as the time to
Q87: You are considering the purchase of a
Q88: A perpetuity of $5,000 per year beginning
Q90: Miller's Hardware plans on saving $42,000,$54,000,and $58,000
Q91: Compound interest pays interest for each time
Q92: Which one of the following will increase
Q93: Assume you are making $989 monthly payments
Q94: The discount factor is used to calculate