A state lotto has a prize that pays $600 each week for 15 years. Find the total value of the prize: $ If the state can earn 3% interest on investments, how much money will they need to put into an account now to cover the weekly prize payments?

A state lotto has a prize that pays $600 each week for 15 years. Find the total value of the prize: $ If the state can earn 3% interest on investments, how much money will they need to put into an account now to cover the weekly prize payments?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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Question

A state lotto has a prize that pays $600 each week for 15 years.

Find the total value of the prize: $

If the state can earn 3% interest on investments, how much money will they need to put into an account now to cover the weekly prize payments?

$

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