Sam has just won the lottery. Specifically, Sam has won the lump sum amount of $2000, but he must wait until the end of 3 years to receive the money. Sam is in need of cash and would rather receive a different pattern of payments: $325 today and then receive some unknown lump sum amount that will be received in 3 years. Using an interest rate of7.50%, determine the unknown lump sum amount that would make the present value of both prizes equivalent.
https://essayshine.com/wp-content/uploads/2021/05/essay-shine.png 0 0 steve https://essayshine.com/wp-content/uploads/2021/05/essay-shine.png steve2021-04-02 04:08:402021-04-02 04:08:40Sam has just won the lottery