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Debra King has just won the Lotto. Her prize pays $51200 at the end of each year for 5 years. In addition, she will receive
Debra King has just won the Lotto. Her prize pays $51200 at the end of each year for 5 years. In addition, she will receive a one-time payment of $307200 at the end of 5 years. Using the following factors at 13%, what amount has Debra really won in the Lotto? (round to the nearest dollar)
Type of Cash Flow Periods Interest Rate Factor PV of $1 5 13% 0.5428 FV of $1 5 13% 1.8424 PV ordinary annuity 5 13% 3.5172 FV ordinary annuity 5 13% 6.4803 PV annuity due 5 13% 3.9744
$746066 $660316 $346829 $563200
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