Macroeconomics, Student Value Edition Plus MyEconLab with Pearson eText Access Card Package
6th Edition
ISBN: 9780134439839
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 6.A, Problem 9PA
To determine
Using Present Value concept in Investment decisions.
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As an employee in the Lottery Commission, your job is to design a new prize. Your idea is to create two grand prize choices: (1) receiving $50,000 at the end of each year beginning in one year for 20 consecutive years, or (2) receiving $500,000 today followed by a one-time payment at the end of 20 years. Using an interest rate of 4%, which of the following comes closest to the amount prize (2) needs to pay at the end of year 20 in order that both prizes to have the same present value? a. $ 114,932 b. $ 235,712 c. $ 393,342 d. $ 440,463 e. $ 326,649
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Chapter 6 Solutions
Macroeconomics, Student Value Edition Plus MyEconLab with Pearson eText Access Card Package
Ch. 6.A - Prob. 1RQCh. 6.A - Prob. 2RQCh. 6.A - Prob. 3RQCh. 6.A - Prob. 4RQCh. 6.A - Prob. 5RQCh. 6.A - Prob. 6PACh. 6.A - Prob. 7PACh. 6.A - Prob. 8PACh. 6.A - Prob. 9PACh. 6.A - Prob. 10PA
Ch. 6.A - Prob. 11PACh. 6.A - Prob. 12PACh. 6.A - Prob. 13PACh. 6.A - Prob. 14PACh. 6 - Prob. 6.1.1RQCh. 6 - Prob. 6.1.2RQCh. 6 - Prob. 6.1.3RQCh. 6 - Prob. 6.1.4RQCh. 6 - Prob. 6.1.5RQCh. 6 - Prob. 6.1.6PACh. 6 - Prob. 6.1.7PACh. 6 - Prob. 6.1.8PACh. 6 - Prob. 6.1.9PACh. 6 - Prob. 6.1.10PACh. 6 - Prob. 6.1.11PACh. 6 - Prob. 6.1.12PACh. 6 - Prob. 6.1.13PACh. 6 - Prob. 6.1.14PACh. 6 - Prob. 6.1.15PACh. 6 - Prob. 6.2.1RQCh. 6 - Prob. 6.2.2RQCh. 6 - Prob. 6.2.3RQCh. 6 - Prob. 6.2.4PACh. 6 - Prob. 6.2.5PACh. 6 - Prob. 6.2.6PACh. 6 - Prob. 6.2.7PACh. 6 - Prob. 6.2.8PACh. 6 - Prob. 6.2.9PACh. 6 - Prob. 6.2.10PACh. 6 - Prob. 6.2.11PACh. 6 - Prob. 6.2.12PACh. 6 - Prob. 6.2.13PACh. 6 - Prob. 6.3.1RQCh. 6 - Prob. 6.3.2RQCh. 6 - Prob. 6.3.3RQCh. 6 - Prob. 6.3.4RQCh. 6 - Prob. 6.3.5PACh. 6 - Prob. 6.3.6PACh. 6 - Prob. 6.3.7PACh. 6 - Prob. 6.3.8PACh. 6 - Prob. 6.3.9PACh. 6 - Prob. 6.4.1RQCh. 6 - Prob. 6.4.2RQCh. 6 - Prob. 6.4.3PACh. 6 - Prob. 6.4.4PACh. 6 - Prob. 6.4.5PACh. 6 - Prob. 6.4.6PACh. 6 - Prob. 6.1RDECh. 6 - Prob. 6.2RDECh. 6 - Prob. 6.3RDECh. 6 - Prob. 6.4RDE
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