What is the present value of your winnings, if you just realized that you won the $1.25 million Publishers Sweepstake and the prize will be awarded on your 100th birthday, 79 years from now. Assume a discount rate of 6.4 percent. ? Multiple Cholce $8,333.33 $10,309.91 $11,288.16 $9,300.82
What is the present value of your winnings, if you just realized that you won the $1.25 million Publishers Sweepstake and the prize will be awarded on your 100th birthday, 79 years from now. Assume a discount rate of 6.4 percent. ? Multiple Cholce $8,333.33 $10,309.91 $11,288.16 $9,300.82
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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Transcribed Image Text:What is the present value of your winnings, if you just realized that you won the $1.25 million Publishers Sweepstake and the prize will be awarded on your 100th
birthday, 79 years from now. Assume a discount rate of 6.4 percent. ?
Multiple Cholce
$8,333.33
$10,309.91
$11,288.16
$9,300.82
Expert Solution
Step 1
Given information:
Future value of winnings $1.25 million
Discount rate is 6.4%
Number of years is 79
Step 2
Calculation of present value of winnings:
Excel workings:
Step by step
Solved in 4 steps with 2 images
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