Question
You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $520,000 per year. Thus, in
| You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $520,000 per year. Thus, in one year, you receive $1.52 million. In two years you get $2.04 million, and so on. |
| If the appropriate interest rate is 6.2 percent, what is the present value of your winnings? |
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Finance And Strategy
Authors: Belen Villalonga
1st Edition
1783504935, 978-1783504930
