You have just won the TVM Lottery. You will receive $1 million today plus another 10 annual
Question:
You have just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $165,000 per year. Thus, in one year you receive $1.165 million. In two years, you get $1.33 million, and so on. If the appropriate interest rate is 7.5 percent, what is the value of your winnings today?
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The time line is To solve this problem we need to find the PV of each lump sum and a...View the full answer
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Anurag Agrawal
I am a highly enthusiastic person who likes to explain concepts in simplified language. Be it in my job role as a manager of 4 people or when I used to take classes for specially able kids at our university. I did this continuously for 3 years and my god, that was so fulfilling. Sometimes I've skipped my own classes just to teach these kids and help them get their fair share of opportunities, which they would have missed out on. This was the key driver for me during that time. But since I've joined my job I wasn't able to make time for my passion of teaching due to hectic schedules. But now I've made a commitment to teach for at least an hour a day.
I am highly proficient in school level math and science and reasonably good for college level. In addition to this I am especially interested in courses related to finance and economics. In quest to learn I recently gave the CFA level 1 in Dec 19, hopefully I'll clear it. Finger's crossed :)
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Related Book For 
Corporate Finance Core Principles and Applications
ISBN: 978-1259289903
5th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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