## Related questions with answers

Question

The $40 million lottery prize that you have just won actually pays out$2 million a year for 20 years. The interest rate is 8%.

b. What is the present value if the first payment comes immediately?

Solution

VerifiedAnswered 1 year ago

Answered 1 year ago

Step 1

1 of 5We have just won a lottery prize, which will be paid out in equal payments with the first payment being paid out immediately. Let's calculate the present value of it.

## Create a free account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy

## Create a free account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy

## Recommended textbook solutions

#### Mathematics for Business and Personal Finance

1st Edition•ISBN: 9780021400966Lange, Rousos4,857 solutions

#### Mathematics for Business and Personal Finance

1st Edition•ISBN: 9780078805059 (1 more)Lange, Rousos4,857 solutions

#### Principles of Corporate Finance

13th Edition•ISBN: 9781260013900Franklin Allen, Richard A. Brealey, Stewart Myers1,631 solutions

## More related questions

1/4

1/7