Question
A contest offers the winner the following prize: $8,325.00 to be paid in one year with each future payment 4.00% greater than the last. The
A contest offers the winner the following prize: $8,325.00 to be paid in one year with each future payment 4.00% greater than the last. The payoff will go forever!
A person considering the contest expects to earn 8.00% per year on his money. What is the value of this prize in todays dollars?
Answer format: Currency: Round to: 2 decimal places.
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Public Finance
Authors: Harvey Rosen, Ted Gayer
8th Edition
0073511285, 9780073511283
