Question
Kirk Faust just won the state lottery which promises to pay him $1,500 per year for 20 years, starting from today, and $1,850 per year
Kirk Faust just won the state lottery which promises to pay him $1,500 per year for 20 years, starting from today, and $1,850 per year for years 21-45, given a 6.75% discount rate. Your company wants to purchase the proceeds from the lottery from Kirk. What is the most that your company can offer?
a. $23,673.45
b. $22,176.53
c. $24,876.43
d. $18,484.98
Step by Step Solution
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Here is the calculation It is b 2217653 Interest rate 675 10675n years PV Factor Discount rate Futur...
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Step: 3
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Financial Accounting
Authors: LibbyShort
7th Edition
78111021, 978-0078111020
