The $46.0 million lottery payment that you have just won actually pays $3.0 million per year for
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Question:
The $46.0 million lottery payment that you have just won actually pays $3.0 million per year for 15 years. The interest rate is 9%.
- If the first payment comes in 1 year, what is the present value of the winnings? Please use Excel and include the formula in your solution.
- What is the present value if the first payment comes immediately? Please use Excel and include the formula in your solution.
Related Book For
Probability And Statistics
ISBN: 9780321500465
4th Edition
Authors: Morris H. DeGroot, Mark J. Schervish
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