The winner of a lottery chooses to receive annual payments of $170,000 at the end of each year for 25 years. If the current interest rate is 4.2 %, find the present value (in dollars) of the payments. (Round your answer to the nearest cent. See Example 5 in this section.)
The winner of a lottery chooses to receive annual payments of $170,000 at the end of each year for 25 years. If the current interest rate is 4.2 %, find the present value (in dollars) of the payments. (Round your answer to the nearest cent. See Example 5 in this section.)
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
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![The winner of a lottery chooses to receive annual payments of $170,000 at the end of each year for 25 years. If the current interest rate is 4.2 %, find the present value (in
dollars) of the payments. (Round your answer to the nearest cent. See Example 5 in this section.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe9b93c40-53af-480b-91cd-16b9e8759075%2Fe1d8fd91-7984-4209-bd6f-e1ec9e11a588%2Fqnrktun_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The winner of a lottery chooses to receive annual payments of $170,000 at the end of each year for 25 years. If the current interest rate is 4.2 %, find the present value (in
dollars) of the payments. (Round your answer to the nearest cent. See Example 5 in this section.)
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