A lottery corporation sells a ticket for a chance to win $$500,000.$ If you win, the prize winnings will be spread out over time with your first payment of $$150,000$ today. The second payment of $$150,000$ would be released to you in a year, and the last payment of $$200,000$ would be released the following year. If you could earn $3\mathrm{.}5\%$ compounded annually, what is the value of the prize today?

Answer rating: 100% (QA)

To calculate the present value of the prize winnings that will be spread out over ... View the full answer