Linus has just won the wait to spend lottery specifically, Ask an Expert

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Linus has just won the "Wait To Spend" lottery. Specifically Linus has won the lump sum amount of S1400 but he must wait until the end of 3 years to receive the money. Linus is in need of cash and would rather receive a different pattern of payments: $325 today and then receive some unknown lump sum amount that will he received in 3 years. Using an interest rate of 2.50%, determine the unknown lump sum amount that would make the present value of both prizes equivalent.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92057315

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