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A small lottery prize offers $ 6 6 per year forever, with the first payment occurring today. If the relevant interest rate is 1 0
A small lottery prize offers $ per year forever, with the first payment occurring today. If the relevant interest rate is per year as an EAR the value of the entire prize today is $
Hint: There is more than one way to solve this problem but however you solve it all cash flows must be brought to the "year point. Look carefully at the timing of these payments and compare that to what the PV Perpetuity formula assumes about timing.
Margin of error for correct responses:
Rounding and Formatting instructions:
Do not enter dollar signs, percent signs, commas, X or any words in your response. Do not round any intermediate work, but round your final response to decimal places example: if your answer is or $ you should enter
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