--%>
Assignment Help - homework help

Present value of winnings by free payments

You win the Idaho state lottery as well as are entitled to two tax-free payments of $500,000 every. You get the first payment today and the next payment in precisely one year. Suppose the interest rate is a generally high 25 percent. The present value of your winnings value of: (1) $1,000,000. (2) $900,000. (3) $750,000. (4) $666,666.67. (5) $1,250,000.

Hey friends please give your opinion for the problem of Economics that is given above.

   Related Questions in Microeconomics

  • Q : Goods and services Refer to the above

    Refer to the above data. Choose the right answer from following. Zabella's balance on goods and services illustrates a: A) $5 billion deficit. B) $5 billion surplus. C) $10 billion surplus. D) $15 billion deficit.

    Q : Enter or exit the market in

    A mix of heterogeneous goods and many potential buyers and sellers which are free to enter or exit the market within the long run are among essential conditions for an industry to be: (1) a monopoly. (2) purely competitive. (3) an oli

    		•
  • Q : Limitation in Lorenz curve A Lorenz

    A Lorenz Curve cannot be used to demonstrate scientifically how the: (w) income is distributed among members of society. (x) wealth is distributed in between members of society. (y) taxes alter the distribution of income. (z) income must be distribute

    		•
  • Q : Demand in price inelastic region

    HoloIMAGine will never deliberately generate and sell holographic technology at an output level where is: (w) marginal revenue [MR] is positive. (x) demand is in a price-elastic region. (y) marginal revenue [MR] is falling. (z) demand is in a price-in

    		•
  • Q : Coefficient of price elasticity Why the

    Why the coefficient of price elasticity of demand is is negative?

    		•
  • Q : The Reciprocal Trade Agreements Act

    Select the right ans wer of the question. The Reciprocal Trade Agreements Act: 1) exempted American exporters from the Sherman Antitrust Act. 2) provided technological assistance to developing countries. 3) brought about considerable reductions in American trade barri

    		•
  • Q : Negative marginal utility The economic

    The economic good becomes an economic bad whenever consumption is expanded into an area where: (1) Sellers experience the moral hazard.  (2) Marginal returns are diminishing. (3) Marginal utility is negative. (4) Buyers suffer from adverse choice. (5) Extreme cho

    		•
  • Q : Dilemma on labor monopsonist The labor

    The labor monopsonist will hire labor up to the point where the marginal: (i) Revenue product of the labor equivalents the wage. (ii) Resource cost of labor equivalents the salary. (iii) Revenue product of labor equivalents its marginal resource cost. (iv) Resource co

    		•
  • Q : External firms enter the industry When

    When most firms in a monopolistically competitive industry currently realize economic profits: (w) a natural monopoly will eventually emerge. (x) external firms will enter the industry. (y) long run accounting profits must be zero. (z

    		•
  • Q : Market Supplies of Labor I have a

    I have a problem in economics on Market Supplies of Labor. Please help me in the following question. In long run, the labor supply curve facing the major industry: (i) Will always be positively associated to the wage rate. (ii) Will slope upward if and only if individ

    		•