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Is there any way to do the problem below on excel? i cant seem to understand the formula. Answer and formula is in the bottom.
Is there any way to do the problem below on excel? i cant seem to understand the formula. Answer and formula is in the bottom. thanks
You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 30 years and the payments will increase by 3.3 percent per year. If the appropriate discount rate is 73 percent, what is the present value of your winnings? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value S 17.002,500.00 Explanation Note: Intermediate answers are shown below as rounded, but the full answer was used to complete the calculation. We can use the present value of a growing annuity equation to find the value of your winnings today. Doing so, we find: PV = (1/6 - 911 [148-911 * 101 - 9/1-n13 PV = $1.000.000[1/.073 - 033)] [14.073 - 033]] > [11 - 033/61 - 0731730 PV = $17,002,431.01Step by Step Solution
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