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To determine whether a lottery winner would prefer to receive the money in a single lump sum immediately or receive an equal amount over a period of years, you would use which type of time value of money
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To determine whether a lottery winner would prefer to receive the money in a single lump sum immediately or receive an equal amount over a period of years, you would use which type of time value of money calculation

User Aarjithn
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21 votes

Answer:

D)The present value of annuity

Step-by-step explanation:

These are the options for the question

a) future value of a single amount.b. Contingent assets, if probable and estimable, are The present value of a single amount.c. The future value of an annuity

d. The present value of annuity

The present value of an annuity can be regarded as the amount of money which would be needed today inorder to fund series annuity payments in the future. With respect to time value of money, particular sum of money that is been received today usually have worth that is more than that same sum of money at a future date. For instance, To determine whether a lottery winner would prefer to receive the money in a single lump sum immediately or receive an equal amount over a period of years, you would use present value of annuity type of time value of money calculation.

User Hettomei
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