The grand prize in the OMG Lottery is a choice between $1,000 paid at the beginning...
The grand prize in the OMG Lottery is a choice between $1,000 paid at the beginning of each month for a period of 10 years and a lump sum paid immediately. If you can invest at an effective annual interest rate of 5%, what is the minimum lump sum you would be willing to accept as winner of this lottery?
A) $94,766 B) $95,152 C) $94,282 D) $94,675 E) $93,847
Homework Answers
Answer:- Option (D): $94,675
Explanation:-
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