A lottery claims its grand prize is $10 million, payable over 20 years at $500,000 per year.

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A lottery claims its grand prize is $10 million, payable over 20 years at $500,000 per year. If the first payment is made immediately, what is this grand prize really worth? Use an interest rate of 6%.

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Financial Markets And Institutions

ISBN: 978-0132136839

7th Edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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Question Posted: Nov 12, 2012 01:09 AM

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A lottery claims its grand prize is $10 million, payable over 20 years at $500,000 per year.

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Financial Markets And Institutions

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