Present Value of an Annuity On January 1, you win $4,600,000 in the state lottery. The $4,600,000 prize will be paid in equal installments of $460,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31 of the current year. If the current interest rate is 6%, determine the present value of your winnings. Use Table 3. Round to the nearest whole dollar. Check My Work 3 more Check My Work uses remaining. Previous Next 11:18

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Present Value of an Annuity
On January 1, you win $4,600,000 in the state lottery. The $4,600,000 prize will be paid in equal installments of $460,000 over 10 years. The payments will
be made on December 31 of each year, beginning on December 31 of the current year. If the current interest rate is 6%, determine the present value of your
winnings. Use Table 3. Round to the nearest whole dollar.
Check My Work 3 more Check My Work uses remaining.
Previous
Next
11:18
Transcribed Image Text:Present Value of an Annuity On January 1, you win $4,600,000 in the state lottery. The $4,600,000 prize will be paid in equal installments of $460,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31 of the current year. If the current interest rate is 6%, determine the present value of your winnings. Use Table 3. Round to the nearest whole dollar. Check My Work 3 more Check My Work uses remaining. Previous Next 11:18
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