Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A college student is reported in the newspaper as having won $12,000,000 in the Kansas State Lottery. However, as is often the custom with lotteries,
A college student is reported in the newspaper as having won $12,000,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $12 million now. Instead she will receive $600,000 at the end of the year for each of the next 20 years. If the annual interest rate is 7%, what is the present value (todays amount) that she won? (ignore taxes).
(Round your answer to the nearest whole dollar)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started