(Answered) Youve won a local lottery and the cash prize is 3000

Finance

You've won a local lottery and the cash prize is $3,000. Alternatively you've been offered $125 a month over the next 3 yrs with payments beginning today. Based on the above what is the EAR of the monthly alternative, assuming that both options have the same economic value?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92724137
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Corporate finance questionan investment pays you 30000 at

Corporate Finance Question: An investment pays you $30,000 at the end of this year, and $10,000 at the end of each of the four following years. What is the present value (PV) of this investment, given that the interest r ...

As the financial controller for kl incorporated a highly

As the financial controller for KL Incorporated, a highly diversified conglomerate, you are considering the alternative financing plans for the next millennium. Due to the good relationship with the banks, your firm is a ...

Question - suppose that the number of ounces of soda put

Question - Suppose that the number of ounces of soda put into a soft-drink can is normally distributed with µ = 12.05 ounces and s = 0.03 ounce. a. Legally, a can must contain at least 12 ounces of soda. What fraction of ...

Your portfolio contains 20000 of air canada stock which has

Your portfolio contains? $20,000 of Air Canada? stock, which has a beta of? 1.4, and? $30,000 of WestJet? stock, which has a beta of 1.8. What is the beta of your? portfolio?

Background information for the next two problems solar home

Background information for the next two problems. Solar Home Inc. is interested in estimating its sustainable sales growth rate. Last year revenues were $1 million, the net profit was $50,000, the investment in assets wa ...

Youre prepared to make monthly payments of 210 beginning at

You're prepared to make monthly payments of $210, beginning at the end of this month, into an account that pays 6.2 percent interest compounded monthly. How many payments will you have made when your account balance reac ...

Question - if tapley inc borrows 500000 on a 10 add on

Question - If tapley inc borrows 500000 on a 10 add on basis payable over 3 years in 36 equal end of month installments how large would the monthly payments be?

Stock in the abc corporation was contributed to the london

Stock in the ABC Corporation was contributed to the London School of Economics and Business, a public school in the United Kingdom. The basis in the stock was $1,000, but its fair market value was $1,500 at the time of t ...

Please help me study for a test by helping me with this

Please help me study for a test by helping me with this problem, showing work/formulas used and rounding to 2 decimal places. The value of your classic $158,600 antique automobile increases by 8.35 percent annually, how ...

Small fry inc has just invented a potato chip that looks

Small Fry, Inc., has just invented a potato chip that looks and tastes like a french fry. Given the phenomenal market response to this product, Small Fry is reinvesting all of its earnings to expand its operations. Earni ...

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 Basic Finance Expert