Question
Receive payments every other year of $1,000 for the next 25 years. First payment is made in one year (t=1) and the last payment in
Receive payments every other year of $1,000 for the next 25 years. First payment is made in
one year (t=1) and the last payment in 25 years (t=25); a total of 13 payments.
If the interest rate is 15% (EAR), what is the present value (value today at t=0)
of these Lottery Prizes?
(1+.15)^2-1= 0.3225 ( understand portion but don't know how to do the rest)
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
