Joan Salt won ($250,000) from the lottery. She will receive ($50,000) at the end of each year

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Joan Salt won $$250,000$ from the lottery. She will receive $$50,000$ at the end of each year for the next five years.

Her investment portfolio has an average annual return of 7 percent. What is the present value of the lottery winnings to Alice?

A. $$102,504.94$.

B. $$185,476.23$.

C. $$205,009.87$.

D. $$250,000.00$.

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Essentials Of Personal Financial Planning

ISBN: 9781945498237

1st Edition

Authors: Susan M. Tillery, Thomas N. Tillery

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Question Posted: Apr 07, 2024 11:00 AM

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Joan Salt won ($250,000) from the lottery. She will receive ($50,000) at the end of each year

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Correct Answer The answer is C 20500987 Explanation We can calculate the present value of the lottery winnings using the concept of annuity due An ann...View the full answer

Essentials Of Personal Financial Planning

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