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Donna Clark has just won the Lotto. Her prize pays $44800 at the end of each year for 5 years. In addition, she will receive
Donna Clark has just won the Lotto. Her prize pays $44800 at the end of each year for 5 years. In addition, she will receive a one-time payment of $268800 at the end of 5 years. Using the following factors at 12%, what amount has Donna really won in the Lotto? (round to the nearest dollar) Type of Cash Flow Periods Interest Rate Factor PV of $1 5 12% 0.5674 FV of $1 5 12% 1.7623 PV ordinary annuity 5 12% 3.6048 FV ordinary annuity 5 12% 6.3528 PV annuity due 5 12% 4.0374 O $314012 O $552657 O $635201 O $492800
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