You have won a court judgment entitling you to a structured settlement of $1,000,000, payable in 4

Question:

You have won a court judgment entitling you to a structured settlement of $1,000,000, payable in 4 installments of $100,000, $200,000, $300,000, and $400,000 at the end of years 1, 2, 3, and 4, respectively. If your personal is 8%, what lump-sum payment today is economically equivalent to receiving the 4 payments spread over time?
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...