You have just won the lottery and will receive $490,000 in one year. You will receive payments for 25 years, and the payments will increase 3 percent per year. If the appropriate discount rate is 11 percent, what is the present value of your winnings? Multiple Choice O $4,973,780 $5,181,021 O $33,617,021 $36,068 $33,617,021

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
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You have just won the lottery and will receive $490,000 in one year. You will receive
Dayments for 25 years, and the payments will increase 3 percent per year. If the
appropriate discount rate is 11 percent, what is the present value of your winnings?
Multiple Choice
$4,973,780
$5,181,021
O $33,617,021
O $36,068
$33,617,021
Transcribed Image Text:You have just won the lottery and will receive $490,000 in one year. You will receive Dayments for 25 years, and the payments will increase 3 percent per year. If the appropriate discount rate is 11 percent, what is the present value of your winnings? Multiple Choice $4,973,780 $5,181,021 O $33,617,021 O $36,068 $33,617,021
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