Determine what is the actual payoff

Assignment Help Econometrics

Reference no: EM13208409

Suppose that you have just won a lottery with an advertised payoff of $20,000,000; however, there is a bit of a catch - you are not paid the $20,000,000 right away but in installments of $2,000,000 over 10 years. Assume the interest rate (and your discount rate) is 10 percent what is the actual payoff?

The correct answer is $13,518,048 (rounded to the nearest dollar)
But I keep getting $12,289,134 (rounded to the nearest dollar)

Reference no: EM13208409

Questions Cloud

State the titration curve for the reaction of c5h5n with hcl : Give the titration curve for the reaction of C5H5N with HCl. The known solution is the acid, and the base is added to the acid.

Describe the motivations fueling each candidates policies : Research and critique the international trade and investment policies proposed by both U.S. Presidential candidates. Describe the motivations fueling each candidates policies and then asses how effective you think these policies would be.

Differences and commonalities of the tectonic activities : What are the differences and commonalities of the tectonic activities and rocks in the Sierra Nevada and Basin & Range areas of California in the Paleozoic time period?

Critique the typologies of the patrol officer : Critique the “typologies of the patrol officer” as discussed in your assigned reading. Be sure to address attributes of each typology. Assess random, directed, and directed aggressive patrols. Outline in what way these initiatives influence current p..

Determine what is the actual payoff : Assume the interest rate (and your discount rate) is 10 percent what is the actual payoff The correct answer is $13,518,048 (rounded to the nearest dollar) But I keep getting $12,289,134 (rounded to the nearest dollar)

Define a system is expanded against an external pressure : A system is expanded against an external pressure of 2 atm, changing its volume from 10 to 35 L and absorbing 765 J as heat from the surroundings.

Early nineteenth-century america : In early nineteenth-century America...

Explain what is the empirical formula of the compound : A compound that contains only C and H was burned in excess O2 to give CO2 and H2O. When 0.270 g of the compound was burned, the amount of CO2 formed reacted completely with 20.0 mL of 2.00 M NaOH solution according to the equation:

Minor parties have contributed most to united state politics : Minor Parties have contributed most to the united states politics by? Ross Perot was often called the spoiler. What is a spoiler in a presidential election? Why are third candidates able to speak their minds on issues more so than their peers in the ..

User Account

All Pages