A state lotto has a prize that pays $600 each week for 30 years. Find the total value of the prize: $ 936000 If the state can earn 6% 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 30 years. Find the total value of the prize: $ 936000 If the state can earn 6% interest on investments, how much money will they need to put into an account now to cover the weekly prize payments?
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
Problem 1PS
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A state lotto has a prize that pays $600 each week for 30 years.
Find the total value of the prize: $ 936000
If the state can earn 6% 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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