A lottery winner will receive $200,000/year for the next 20 years. What is the equivalent present value
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A lottery winner will receive $200,000/year for the next 20 years. What is the equivalent present value of the winnings if there is a secure investment opportunity providing 7.5% p.a.? What rate of return would be needed for a present value of $2.5 million?
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From Table 91 Equation 914 for n 20 and i 0075 P 200000 1 0075 20 10075 1 0075 201 P 2038 900 A pr...View the full answer
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