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A contest has a grand prize of $500,000. However the contest stipulates that the winner will receive just $200,000 immediately, $100,000 in one year, $100,000
A contest has a grand prize of $500,000. However the contest stipulates that the winner will receive just $200,000 immediately, $100,000 in one year, $100,000 in two years, and $50,000 at the end of Years three and four, for a total of $500,000. At a discount rate of 8% how much would a contest winner actually win in current dollars? Show your work.
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