Question
Suppose you win a lottery that pays you $250,000 a year for the next 10 years. You will receive the first payment exactly one-year from
Suppose you win a lottery that pays you $250,000 a year for the next 10 years. You will receive the first payment exactly one-year from today, the second two years from today and so on. If the current interest rate is 7%, what could you sell your lottery win for (i.e. what is its present value?)
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The Meaningful Money Handbook
Authors: Pete Matthew
1st Edition
0857196510, 978-0857196514
