Question the first lottery payment in problem will not be, Ask an Expert

Economics

Question: The first lottery payment in Problem will not be received until the end of the third year. What is the present worth if the interest rate is 12%?

Problem: A lottery pays the winner $1 million, in 20 equal payments of $50,000. The payments are received at the end of the year, and the winner's interest rate is 12%. What is the present worth of the winnings?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92635317

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question the english and the vickrey auction are

Question: The English and the Vickrey auction are strategically equivalent, and the revenue for the seller is the same. Yet, in terms of the information received by the seller/auctioneer they are different. What is this ...

Question on march 4 1990 the new york times reported wine

Question: On March 4, 1990, the New York Times reported "Wine Equation Puts Some Noses Out of Joint." In this problem you will estimate an equation that predicts the quality of wine. Typically wine is rated long before i ...

Question you are the human resources manager for a famous

Question: You are the human resources manager for a famous retailer and are trying to convince the president of the company to change the structure of employee compensation. Currently, the company's retail sales staff is ...

Question 1 suppose the velocity of money is constant and

Question: 1. Suppose the velocity of money is constant and potential output grows by 3% per year. By what percentage should the money supply grow in order to achieve the following inflation rate targets? 2. Suppose the v ...

Question in your own words but with accuracy state and

Question: In your own words but with accuracy, state and explain the second version of Kant's Categorical Imperative. Give an example and explain whether it accord with this imperative or not. The response must be typed, ...

Question the utility function that jane receives by

Question: The utility function that Jane receives by consuming food and clothing is given by U= F*C. 1) In a diagram, draw the indifference curves associated with utility levels of 12 and 24 (measure clothing along the h ...

Question your executive team has asked you to be a mentor

Question: Your executive team has asked you to be a mentor for a new MBA graduate who was assigned to accompany you on your next trip to Asia. As you begin your discussion with the new graduate, you sense that there are ...

Question 1 can it ever be the case that third degree price

Question: (1) Can it ever be the case that third degree price discrimination increases social welfare? If so, present an example to illustrate. If not, explain why. (2) Use the context of the durable goods monopoly probl ...

Question a risk-averse economic agent with a yearly income

Question: A risk-averse economic agent with a yearly income off $100,000 inherits a vineyard. In dry years, the vineyard's harvest is worth $100,000; in wet years, the vineyard's harvest is worth $20,000. Each year there ...

Question risk management covers many areas of an

Question: Risk management covers many areas of an organization's operations. Describe a minimum of two elements of risk management and (1) evaluate if those elements are present in your organization's risk management pro ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert