A small lottery prize offers $84 per year forever, with the first payment occurring today. If the relevant interest rate is 10% 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 0" 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: +/- .05