Finance: what is the present value of £50000 to be received in ten years’ time when the interest rate (nominal annual) is 8 per cent and (a) annual discounting is used? (b) semi-annual discounting is used?
Finance As a winner of a lottery you can choose one of the following prizes: -£10 million now. -£15 million at the end of six years. -£800,000 a year forever, starting in one year. -£1,500,000 for each of the next ten years, starting in one year. If the discount rate is 8 per cent, which … Read more