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Sharon Lee has just won the Lotto. Her prize pays $47200 at the end of each year for 5 years. In addition, she will receive
Sharon Lee has just won the Lotto. Her prize pays $47200 at the end of each year for 5 years. In addition, she will receive a one-time payment of $283200 at the end of 5 years. Using the following factors at 12%, what amount has Sharon really won in the Lotto? (round to the nearest dollar) Type of Cash Flow Periods Interest Rate Factor PV of $1 5 12% 0.5674 FV of $1 5 12% 1.7623 PV ordinary annuity 5 12% 3.6048 FV ordinary annuity 5 12% 6.3528 PV annuity due 5 12% 4.0374 $669230 $582264 $519200 $330835
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