On January 1, you win $2,500,000 in the state lottery. The $2,500,000 prize will be paid in equal installments of $250,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 6%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar. $
On January 1, you win $2,500,000 in the state lottery. The $2,500,000 prize will be paid in equal installments of $250,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 6%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole 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
Problem 1PS
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On January 1, you win $2,500,000 in the state lottery. The $2,500,000 prize will be paid in equal installments of $250,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 6%, determine the
$
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