Question
Victor won a $2 million lottery that will pay him $100,000 at the end of each of the next twenty years. Assuming an appropriate interest
Victor won a $2 million lottery that will pay him $100,000 at the end of each of the next twenty years. Assuming an appropriate interest rate is 6% compounded annually, what is the present value of this amount?
| a. | 1,146,992 |
| b. | 1,215,812 |
| c. | 2,000,000 |
| d. | 2,325,659 |
| e. | 3,678,559 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Production And Operations Analysis
Authors: Steven Nahmias, Tava Lennon Olsen
7th Edition
1478623063, 9781478623069
