Question
A lottery ticket advertises a $1 million prize. However, the fine print indicates that the winning amount will be paid out on the following schedule:
A lottery ticket advertises a $1 million prize. However, the fine print indicates that the winning amount will be paid out on the following schedule: $250,000 today, $250,000 one year from now, and $100,000 per year thereafter. If money can earn 9% compounded annually, what is the value of the prize today?
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Icdt 88 2nd International Conference On Database Theory Bruges Belgium August 31 September 2 1988 Proceedings Lncs 326
Authors: Marc Gyssens ,Jan Paredaens ,Dirk Van Gucht
1st Edition
3540501711, 978-3540501718
