Question
Mark Young has just won the state lottery, paying $50,000 a year for 10 years. He is to receive his first payment five years from
Mark Young has just won the state lottery, paying $50,000 a year for 10 years. He is to receive his first payment five years from today. If the interest rate is 8 percent and compounded quarterly, what is the true value of the lottery?
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Public Finance
Authors: Harvey S Rosen
6th Edition
0072374055, 978-0072374056
