6.26 Present value of an annuity due: Sharon Kabana has won a state lottery and will receive a payment of $89,729.45 every year, starting today, for the next 20 years. If she invests the proceeds at a rate of 7.25 percent, what is the present value of the cash flows that she will receive? Round to the nearest dollar.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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I need the answer to 6.26.

inually,
ave
/ears
buys iis
6.25 Present value of an annuity due: Grant Productions borrowed some money from the
California Finance Company at a rate of 17.5 percent for a seven-year period. The loan calls for a
payment of $1,540,862.19 each year beginning today. How much did Grant borrow?
6.26 Present value of an annuity due: Sharon Kabana has won a state lottery and will receive a
payment of $89,729.45 every year, starting today, for the next 20 years. If she invests the proceeds
at a rate of 7.25 percent, what is the present value of the cash flows that she will receive? Round
to the nearest dollar.
Transcribed Image Text:inually, ave /ears buys iis 6.25 Present value of an annuity due: Grant Productions borrowed some money from the California Finance Company at a rate of 17.5 percent for a seven-year period. The loan calls for a payment of $1,540,862.19 each year beginning today. How much did Grant borrow? 6.26 Present value of an annuity due: Sharon Kabana has won a state lottery and will receive a payment of $89,729.45 every year, starting today, for the next 20 years. If she invests the proceeds at a rate of 7.25 percent, what is the present value of the cash flows that she will receive? Round to the nearest dollar.
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