You have 2 lawsuit settlement choices. Pay $50,000 right now or pay $7850 at the end of each year for 10 years. Money is worth 8% to you. Which option should you choose to minimise your payout? Question 10 options: Pay up front $50,000 Pay $7850 for the next 10 years Both options are equal.

You have 2 lawsuit settlement choices. Pay $50,000 right now or pay $7850 at the end of each year for 10 years. Money is worth 8% to you. Which option should you choose to minimise your payout? Question 10 options: Pay up front $50,000 Pay $7850 for the next 10 years Both options are equal.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

You have 2 lawsuit settlement choices. Pay $50,000
right now or pay $7850 at the end of each year for 10
years. Money is worth 8% to you. Which option should
you choose to minimise your payout?
Question 10 options:
Pay up front $50,000
Pay $7850 for the next 10 years
Both options are equal.

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answer this image
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