Suppose you win the lottery and are given the following three options:
Receive 20 million dollars today;
Receive 1.5 million dollars per year over the next 20 years; or
Receive 1 million dollars per year indefinitely (being passed on to your heirs).
Which is the best deal, assuming that the annual interest rate is 5%? We answer this by
working through the following sequence of questions.
How much is the 1.5 million dollars received annually over the course of 20 years worth in
terms of today’s dollars, assuming an annual interest rate of 5%?
Answers
Answered by
1
Answer:
answer of this question is ₹575
Answered by
0
Answer:
Answer of this question is
575
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