Question
You have won a small lottery in which you will receive a series of payments forever. The payments start at $1,040 received today and grow
You have won a small lottery in which you will receive a series of payments forever. The payments start at $1,040 received today and grow effectively at 2.70% a year forever. Given an APR of 8.60% compounded quarterly, what is the present value of your lottery winnings?
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Probability For Risk Management
Authors: Matthew J. Hassett, Donald G. Stewart
2nd Edition
156698548X, 978-1566985482
