Explain what is the equivalent lump-sum payment

Reference no: EM13201683

Shelley wants to cash in her winning lottery ticket. She can either receive ten, $100,000 semiannual payments starting today, or she can receive a lump-sum payment now based on a 6% annual interest rate. What is the equivalent lump-sum payment?

A. $853,020.

B. $801,971.

C. $744,090.

D. $878,611.

Reference no: EM13201683

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