Question 1 1.5 pts You win the lottery and are told you won $42000000. You actually won $1000000 every year for the next 42 years. If the first payment were to be made today and your required rate of return is 6% (effective annual rate) what would you accept today (in dollars) in exchange for all those 42 payments? (Round your answer to three decimal places. For example, 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234)
Question 1 1.5 pts You win the lottery and are told you won $42000000. You actually won $1000000 every year for the next 42 years. If the first payment were to be made today and your required rate of return is 6% (effective annual rate) what would you accept today (in dollars) in exchange for all those 42 payments? (Round your answer to three decimal places. For example, 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234)
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:Question 1
1.5 pts
You win the lottery and are told you won $42000000. You actually
won $1000000 every year for the next 42 years. If the first payment
were to be made today and your required rate of return is 6%
(effective annual rate) what would you accept today (in dollars) in
exchange for all those 42 payments? (Round your answer to three
decimal places. For example, 1.23450 or 1.23463 will be rounded to
1.235 while 1.23448 will be rounded to 1.234)
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