You have won a small lottery in which you will receive a series of payments forever....
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You have won a small lottery in which you will receive a series of payments forever. The payments start at $1,200 received today and grow effectively at 5.25% a year forever. Given an APR of 7.25% compounded quarterly, what is the present value of your lottery winnings? You have won a small lottery in which you will receive a series of payments forever. The payments start at $1,200 received today and grow effectively at 5.25% a year forever. Given an APR of 7.25% compounded quarterly, what is the present value of your lottery winnings?
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