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As winner of a breakfast cereal competition, you can choose one of the following prizes: a. If the interest rate is 12%, find the PV for each of the prizes. (Do not round intermediate calculations. Round your answer to 2 decimal places.) PV $130000 now. $183000 at the end of five years. $12900 a year forever. $20500 for each of 10 years. $6800 next year and increasing thereafter by 5% a year forever. b. Which is the most valuable prize? O $130,000 now. O $183,000 at the end of five years. O $12,900 a year forever. O $20,500 for each of 10 years. O $6,800 next year and increasing thereafter by 5% a year forever.

As winner of a breakfast cereal competition, you can choose one of the following prizes: a. If the interest rate is 12%, find the PV for each of the prizes. (Do not round intermediate calculations. Round your answer to 2 decimal places.) PV $130000 now. $183000 at the end of five years. $12900 a year forever. $20500 for each of 10 years. $6800 next year and increasing thereafter by 5% a year forever. b. Which is the most valuable prize? O $130,000 now. O $183,000 at the end of five years. O $12,900 a year forever. O $20,500 for each of 10 years. O $6,800 next year and increasing thereafter by 5% a year forever.

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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As winner of a breakfast cereal competition, you can choose one of the following prizes: a. If the interest rate is 12%, find the PV for each of the prizes. (Do not round intermediate calculations. Round your answer to 2 decimal places.) PV $130000 now. $183000 at the end of five years. $12900 a year forever. $20500 for each of 10 years. $6800 next year and increasing thereafter by 5% a year forever. b. Which is the most valuable prize? O $130,000 now. O $183,000 at the end of five years. O $12,900 a year forever. O $20,500 for each of 10 years. O $6,800 next year and increasing thereafter by 5% a year forever.
Transcribed Image Text:As winner of a breakfast cereal competition, you can choose one of the following prizes: a. If the interest rate is 12%, find the PV for each of the prizes. (Do not round intermediate calculations. Round your answer to 2 decimal places.) PV $130000 now. $183000 at the end of five years. $12900 a year forever. $20500 for each of 10 years. $6800 next year and increasing thereafter by 5% a year forever. b. Which is the most valuable prize? O $130,000 now. O $183,000 at the end of five years. O $12,900 a year forever. O $20,500 for each of 10 years. O $6,800 next year and increasing thereafter by 5% a year forever.
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