Steven won a lottery that will pay $630000 at the end of each of the next twenty years. Sheridan Finance has offered to purchase the payment stream for $7849800. What interest rate (to the nearest percent) was used to determine the amount of the payment? O 7% O 5% O 6% O 8%

Steven won a lottery that will pay $630000 at the end of each of the next twenty years. Sheridan Finance has offered to purchase the payment stream for $7849800. What interest rate (to the nearest percent) was used to determine the amount of the payment? O 7% O 5% O 6% O 8%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Steven won a lottery that will pay $630000 at the end of each of the next twenty years. Sheridan Finance has offered to purchase the
payment stream for $7849800. What interest rate (to the nearest percent) was used to determine the amount of the payment?
O 7%
O 5%
O 6%
O 8%

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