Joan Salt won ($250,000) from the lottery. She will receive ($50,000) at the end of each year
Question:
Joan Salt won \($250,000\) from the lottery. She will receive \($50,000\) at the end of each year for the next five years.
Her investment portfolio has an average annual return of 7 percent. What is the present value of the lottery winnings to Alice?
A. \($102,504.94\).
B. \($185,476.23\).
C. \($205,009.87\).
D. \($250,000.00\).
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Correct Answer The answer is C 20500987 Explanation We can calculate the present value of the lottery winnings using the concept of annuity due An ann...View the full answer
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Related Book For 
Essentials Of Personal Financial Planning
ISBN: 9781945498237
1st Edition
Authors: Susan M. Tillery, Thomas N. Tillery
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