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please hurry will upvote! You have won $1,100,000 in a lottery. Your winnings will be paid to you in equal annual year - end installments
please hurry will upvote!
You have won $1,100,000 in a lottery. Your winnings will be paid to you in equal annual year - end installments of $220,000 over 5 years. You estimate that you can earn 6% on your investments. The present value of $1 for 5 periods at 6% is 0.747 . The present value of an ordinary annuity of $1 for 5 periods at 6% is 4.212 . The present value of your $1,100,000 winnings would be closest to: A. $926,640 B. $821,700 C. $1,100,000 D. $164,340 Step by Step Solution
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