Your mother just won the Georgia Lottery and the jackpot is $100 million. The money is...

 

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Your mother just won the Georgia Lottery and the jackpot is $100 million. The money is paid in equal annual installments of $1 million over 100 years. If the appropriate annual discount rate is 8% per year, how much is the sweepstakes actually worth today if the first payment is in exactly 1 year? Your mother just won the Georgia Lottery and the jackpot is $100 million. The money is paid in equal annual installments of $1 million over 100 years. If the appropriate annual discount rate is 8% per year, how much is the sweepstakes actually worth today if the first payment is in exactly 1 year? Your mother just won the Georgia Lottery and the jackpot is $100 million. The money is paid in equal annual installments of $1 million over 100 years. If the appropriate annual discount rate is 8% per year, how much is the sweepstakes actually worth today if the first payment is in exactly 1 year? Your mother just won the Georgia Lottery and the jackpot is $100 million. The money is paid in equal annual installments of $1 million over 100 years. If the appropriate annual discount rate is 8% per year, how much is the sweepstakes actually worth today if the first payment is in exactly 1 year?

Answer rating: 100% (QA)

To determine the present value of the sweepstakes we need to calculate the present valu... View the full answer