FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A lottery offers a prize of $750 every week for 5 years.
The first payment will be made one week from now.
If money can be invested at 4.4% per year compounded weekly, what cash payment
received immediately is equivalent to the lottery prize?
a) $148.05
b) $218 010.73
c) $711 389.65
d) $174 973.98
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Transcribed Image Text:A lottery offers a prize of $750 every week for 5 years. The first payment will be made one week from now. If money can be invested at 4.4% per year compounded weekly, what cash payment received immediately is equivalent to the lottery prize? a) $148.05 b) $218 010.73 c) $711 389.65 d) $174 973.98
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