5-4 The winner of a sweepstakes prize is given the choice of a onetime payment of $1,000,000 or a guaranteed $80,000 per year for 20 years. If the value of money is 5%, which option should the winner choose? Solution Option 1: P $1,000,000 Option 2: P 80,000(P/A, 5%, 20) = $996,960 Choose option 1: take the $1,000,000 now

5-4 The winner of a sweepstakes prize is given the choice of a onetime payment of $1,000,000 or a guaranteed $80,000 per year for 20 years. If the value of money is 5%, which option should the winner choose? Solution Option 1: P $1,000,000 Option 2: P 80,000(P/A, 5%, 20) = $996,960 Choose option 1: take the $1,000,000 now

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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