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You have just won the lottery and will receive $570,000 in one year. You will receive payments for 21 years, which will increase 5 percent
You have just won the lottery and will receive $570,000 in one year. You will receive payments for 21 years, which will increase 5 percent per year. The appropriate discount rate is 10 percent. |
Required:
What is the present value of your winnings? |
Multiple Choice
$18,881,401
$77,024
$7,108,257
$6,823,927
$18,881,401
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