Question
A lottery pays the winner $1 million in 20 equal annual payments of $50,000. The first payment will be made at the end of the
A lottery pays the winner $1 million in 20 equal annual payments of $50,000. The first payment will be made at the end of the second year. What is the present worth if the winners annual interest rate is 5.25%? (Answer: $579,680)
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
