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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