Question
You just won the magazine sweepstakes and opted to take unending payments. The first payment will be $35,000 and will be paid one year from
You just won the magazine sweepstakes and opted to take unending payments. The first payment will be $35,000 and will be paid one year from today. Every year thereafter, the payments will increase by 2% annually. What is the present value of your prize at a discount rate of 6%?
| 775,000 | ||
| 350,000 | ||
| 875,000 | ||
| 455,000 | ||
| 556,000 |
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Finance And Modernization
Authors: Gerald D. Feldman, Peter Hertner
1st Edition
0754662713, 978-0754662716
