A lottery claims its grand prize is $20 million, payable over 40 years at $500,000 per year.

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A lottery claims its grand prize is $20 million, payable over 40 years at $500,000 per year. If the first payment is made immediately, what is the grand prize worth? Use an interest rate of 12%.

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Financial Markets And Institutions

ISBN: 9781292215006

9th Global Edition

Authors: Stanley Eakins Frederic Mishkin

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Question Posted: Oct 16, 2023 07:24 AM

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A lottery claims its grand prize is $20 million, payable over 40 years at $500,000 per year.

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To calculate the present value of the grand prize you can use the formula for the present ...View the full answer

Financial Markets And Institutions

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