Multiple Choice
You have a choice between a lottery lump sum payout of $10,000,000 today or a series of twenty-five annual annuity payments (first payment one year from today) .At a discount rate of 6.50%,how large must the annual annuity payments be to make you indifferent between the two choices?
A) $819,814.81
B) $873,102.77
C) $769,779.17
D) $400,000.00
Correct Answer:
Verified
Correct Answer:
Verified
Q9: Given positive equal annual cash flows and
Q22: The last interest payment on a 12-year,6%,$138,000,fully-amortized
Q95: Amy Plisko is 23 years old and
Q98: What is the present value of a
Q99: The formula for the Present Value Interest
Q100: If you borrow $50,000 at an annual
Q101: You have saved $47,000 for college and
Q103: A wealthy woman just died and left
Q105: If you borrow $50,000 at an annual
Q107: Assume a five-year equal payment amortization schedule