Monday, 13 April 2015

You are to receive $1500 forever from the federal government as the winner of the national fiscally prudent and awareness contest.

You are to receive $1500 forever from the federal government as the winner of the national fiscally prudent and awareness contest. The government also has provided you with the option of choosing $1700 over the next 30 years. Payments are to be received semi-annually and if the market rate of interest is 8% what is the value of the two options?


I am having trouble with undertsanding this problem


Can you break it down for me?



You are to receive $1500 forever from the federal government as the winner of the national fiscally prudent and awareness contest.

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