You have just won the lottery and will receive $480,000 in one year. You will receive payments for 21 years, and the payments will increase 4 percent per year. If the appropriate discount rate is 10 percent, what is the present value of your winnings? Multiple Choice $64,863 $17,979,827 $17,979,827 $5,315,088 $5,536,550
You have just won the lottery and will receive $480,000 in one year. You will receive payments for 21 years, and the payments will increase 4 percent per year. If the appropriate discount rate is 10 percent, what is the present value of your winnings? |
Multiple Choice
- $64,863
- $17,979,827
- $17,979,827
- $5,315,088
- $5,536,550