Suppose a state lottery prize is to be paid in 25 payments of $240,000 each at the end of each of the next 25 years. (a) What is the total of all payments received (the advertised value of the lottery prize)? (b) Instead of receiving annual payments, the winner opts to receive a single payment today equal to the present value of the prize. Find the amount of today's payment if: (Round your answer to the nearest cent.) interest is 9% $ interest is 13% $
Suppose a state lottery prize is to be paid in 25 payments of $240,000 each at the end of each of the next 25 years. (a) What is the total of all payments received (the advertised value of the lottery prize)? (b) Instead of receiving annual payments, the winner opts to receive a single payment today equal to the present value of the prize. Find the amount of today's payment if: (Round your answer to the nearest cent.) interest is 9% $ interest is 13% $
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 9EB: If you invest $15,000 today, how much will you have in (for further instructions on future value in...
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