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shelley wants to cash in her winning lottery ticket. she can either receive ten, $198,000 semiannual payments starting today, or she can receive a single-amount payment today based on a 6% annual interest rate. what is the single-amount payment she can receive today?

Answer :

The single-amount payment she can receive today is $1688980.16

What is the single-amount payment?

The single-payment compound-amount formula is the simplest of the six compound interest formulas. The term refers to the concept that at the end of the loan, a single payment is due that includes all compounded interest.

Number of semiannual payments received = 10

Amount of each payment = $198,000

Annual interest rate = 6%

Semiannual interest rate= [tex]\frac{6}{2}= 3%[/tex]

Payment= [tex]Amount*\frac{1-(1+i)^{n} }{i}[/tex]

Payment = $198,000× [tex]\frac{1-(1+0.03)^{-10} }{0.03}[/tex]

Payment = $1688980.16.

To know more about single-amount payment visit:

brainly.com/question/14243031

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