Question
On the Lottery sheet, what is the name of the best function to find today's value of the future lottery payments? On the Lottery sheet,
On the Lottery sheet, what is the name of the best function to find today's value of the future lottery payments?
On the Lottery sheet, what is the best formula to enter in B26?
Hint: Money received in the future is less valuable than money you have today because money you have now can be invested to earn interest which will become more valuable over time.
Receive $500,000 for next 20 years
Receive $6 million today
| Total Winnings | $ 10,000,000 |
| No. Years | $ 20 |
| Annual Payments | $ 500,000 |
| Interest Rate | 5% |
| Today's Value of Future Earnings |
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Introduction To Data Analytics For Accounting
Authors: Vernon Richardson, Katie Terrell, Ryan Teeter
1st Edition
126406828X, 978-1264068289
