A prize pays to the winner the amount of $100 to be received at the end of each year for 10 consecutive years. However, the first amount is not received until the end of year 5 such that the payments stretch from year 5 through year 14. Which comes closest to the present value of this prize if the interest rate is 2%?

Answer rating: 100% (QA)

1 Present Value of the First 5 Years Years 15 Since no payments are rece... View the full answer