Shelley wants to cash in her winning lottery ticket. She can either receive sixteen, $205,000 semiannual...
Shelley wants to cash in her winning lottery ticket. She can either receive sixteen, $205,000 semiannual payments starting today, or she can receive a single-amount payment today based on a 6% annual interest rate. What is the single-amount payment she can receive today?
Homework Answers
| Semi-annual interest rate | 3% | |
| Semiannual payments | 205000 | |
| X PVAD (n=16,i=3%) | 12.93794 | =1+(1-(1.03)^-15)/0.03 |
| Single-amount payment she can receive today | 2652278 | or 2652277 |
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