Suppose the interest rate is 5 05 which will you choose and
You win the lottery. You can take your prize of $800,000 today or receive 10 payments of $100,000 annually beginning next year. Suppose the interest rate is 5% (.05): Which will you choose and why? What if the interest rate is 2% (.02)?
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you win the lottery you can take your prize of 800000 today or receive 10 payments of 100000 annually beginning next
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