Linus has just won the wait to spend lottery specifically


Linus has just won the "Wait To Spend" lottery. Specifically Linus has won the lump sum amount of S1400 but he must wait until the end of 3 years to receive the money. Linus is in need of cash and would rather receive a different pattern of payments: $325 today and then receive some unknown lump sum amount that will he received in 3 years. Using an interest rate of 2.50%, determine the unknown lump sum amount that would make the present value of both prizes equivalent.

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Financial Management: Linus has just won the wait to spend lottery specifically
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