Question
Present Value of an Annuity On January 1, you win $1,040,000 in the state lottery. The $1,040,000 prize will be paid in equal installments of
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Present Value of an Annuity
On January 1, you win $1,040,000 in the state lottery. The $1,040,000 prize will be paid in equal installments of $130,000 over 8 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 6%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar.
Present Value of an Annuity
On January 1, you win $1,040,000 in the state lottery. The $1,040,000 prize will be paid in equal installments of $130,000 over 8 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 6%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar.
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Financial Accounting For Managers
Authors: Sanjay Dhamija
3rd Edition
9789352868339
