Question
Present Value of an Annuity On January 1 you win $5,300,000 in the state lottery. The $5,300,000 prize will be paid in equal installments of
Present Value of an Annuity
On January 1 you win $5,300,000 in the state lottery. The $5,300,000 prize will be paid in equal installments of $530,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 7%, 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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Accounting Principles
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
12th edition
1119132223, 978-1-119-0944, 1118875052, 978-1119132226, 978-1118875056
