*a-* You Just won a lottery that promise to pay you 100,000 exactly 10 years from now. Because the 100,000 is guaranteed by the government, opportunities exist to sell the claim today for an immediate single cash payment. a- What is the least you will sell your claim for it you can eam the following rates of retum on similar risk investment during the 10-year period? 1- 5% 2- 8% 3- 11% *B* - Rework on part a under the assumption that 100,000 payment will be received in 15 years rather than 10 years. *C* - Explain why you want sell the claim or do not want sell , explain you forme *a* and *b*
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
*a-* You Just won a lottery that promise to pay you 100,000 exactly 10 years from now. Because the 100,000 is guaranteed by the government, opportunities exist to sell the claim today for an immediate single cash payment. a- What is the least you will sell your claim for it you can eam the following rates of retum on similar risk investment during the 10-year period?
1- 5%
2- 8%
3- 11%
*B* - Rework on part a under the assumption that 100,000 payment will be received in 15 years rather than 10 years.
*C* - Explain why you want sell the claim or do not want sell , explain you forme *a* and *b*
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