Congratulations! You just won the "Retire Your Way" prize of

$500,000

. However, you are 20 years old and the prize is only paid when you reach age 50 . And yes, they pay

$500,000

exactly in 30 years.\ If your discount rate is

3%

per year, and you would apply this continuously,\ What is the present value of the

$500,000

to you now, at age 20 ?

Congratulations! You just won the "Retire Your Way" prize of $500,000. However, you are 20 years old and the prize is only paid when you reach age 50 . And yes, they pay $500,000 exactly in 30 years. If your discount rate is 3% per year, and you would apply this continuously, What is the present value of the $500,000 to you now, at age 20