Ofen kottery winnings are divided ito equal payments gven annually for 20-25 years So the present value of thewinning woth es han the actual jackpot, dpending on the teat which money could be invested. Find the present value in dollars using Jackp Amourt i t Rate Eq A Paymet dola $3.000.000 5% 20 $3,000.000 11% 20 $3.000.000 25 $3.000.000 11% diaund to he nearest dolar a needed) 25
Ofen kottery winnings are divided ito equal payments gven annually for 20-25 years So the present value of thewinning woth es han the actual jackpot, dpending on the teat which money could be invested. Find the present value in dollars using Jackp Amourt i t Rate Eq A Paymet dola $3.000.000 5% 20 $3,000.000 11% 20 $3.000.000 25 $3.000.000 11% diaund to he nearest dolar a needed) 25
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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Transcribed Image Text:Offen lotery winnings are divided into equal payments given annualy for 20-25 years. So the present value of the winnings is worth kess than the actual jackpot, depending on the rate at which money could be
invested. Find the present value in dollars using the given condions.
Jae
Eou A Prent Va
Pays
Amount
Rate
n dolars)
$3,000,000
5%
20
$3,000,000
11%
20
$3,000,000
25
$3,000,000 11%
ound to the neareet dolar as needed)
25
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