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You Win a Lottery and Have a Choice of Taking

Question 8

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You win a lottery and have a choice of taking $200 000.00 immediately or taking payments of $8000.00 at the end of every three months for ten years. Which offer is preferable if interest is 8% compounded quarterly?

Correct Answer:

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PMT = 8000; n = 10(4) = 40; i ...

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