Suppose you hit a progressive jackpot on a slot machine in a casino in Atlantic City and are given the choice of the following prizes:
Prize 1: $150 000 to be received right away,with three additional payments of $150 000 to be received each year for the next 3 years.
Prize 2: $500 000 to be received right away.
If the interest rate is 5 per cent,what is the present value of each prize?
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The Answer of Suppose you hit a progressive jackpot on a slot machine in a casino in Atlantic City and are given the choice of the following prizes:
Prize 1: $150 000 to be received right away,with three additional payments of $150 000 to be received each year for the next 3 years.
Prize 2: $500 000 to be received right away.
If the interest rate is 5 per cent,what is the present value of each prize?
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Suppose You Hit a Progressive Jackpot on a Slot Machine