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Suppose you win the Publishers Clearinghouse $7.5 million sweepstakes. The money is paid in equal monthly installments of $31,250 in the beginning of each month over 20 years. If the going APR is 6%, how much is the sweepstakes actually worth today? A $4,361,899.12 B Answer can not be found. C) $4,735,166.03 (D) $4,559,293.68 E $4,383,708.61

Suppose you win the Publishers Clearinghouse $7.5 million sweepstakes. The money is paid in equal monthly installments of $31,250 in the beginning of each month over 20 years. If the going APR is 6%, how much is the sweepstakes actually worth today? A $4,361,899.12 B Answer can not be found. C) $4,735,166.03 (D) $4,559,293.68 E $4,383,708.61

Essentials Of Investments
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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Suppose you win the Publishers Clearinghouse $7.5 million sweepstakes. The money is paid in equal monthly installments of $31,250 in the beginning of each month over 20 years. If the going APR is 6%, how much is the sweepstakes actually worth today? A $4,361,899.12 B Answer can not be found. C) $4,735,166.03 (D) $4,559,293.68 E $4,383,708.61
Transcribed Image Text:Suppose you win the Publishers Clearinghouse $7.5 million sweepstakes. The money is paid in equal monthly installments of $31,250 in the beginning of each month over 20 years. If the going APR is 6%, how much is the sweepstakes actually worth today? A $4,361,899.12 B Answer can not be found. C) $4,735,166.03 (D) $4,559,293.68 E $4,383,708.61
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