You are given an option of three lottery prizes: $ XXXXXXXXXXnow with $ XXXXXXXXXXin 5 years, A payment each year of $ XXXXXXXXXXbeginning in 1 year and ending after 4 payments, 6 payments half a year...


You are given an option of three lottery prizes: $34319.67 now with $69386.13 in 5 years, A payment each year of $26839.07 beginning in 1 year and ending after 4 payments, 6 payments half a year apart, each of $15910.22 with the first payment now. The current rate of interest is 4.1% compounded semi-annually. What is the value of the first option in today's dollars?



You are given an option of three lottery prizes:



$29129.95 now with $68588.79 in 5 years,


A payment each year of $24427.83 beginning in 1 year and ending after 4 payments,


6 payments half a year apart, each of $18835.96 with the first payment now.


The current rate of interest is 3.17% compounded semi-annually. What is the value of the second option in today's dollars?



You are given an option of three lottery prizes:



$30026.34 now with $68562.68 in 5 years,


A payment each year of $24569.53 beginning in 1 year and ending after 4 payments,


6 payments half a year apart, each of $19492.01 with the first payment now.


The current rate of interest is 4.66% compounded semi-annually. What is the value of the third option in today's dollars?



You are given an option of three lottery prizes:



$26768.62 now with $68093.92 in 5 years,


A payment each year of $25555.3 beginning in 1 year and ending after 4 payments,


6 payments half a year apart, each of $17411.24 with the first payment now.


The current rate of interest is 4.02% compounded semi-annually. What is the value in today's dollars of the option you should select?



Jun 04, 2022
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