Receive payments every other year of $1,000 for the next 25 years. First payment is made in

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one year (t=1) and the last payment in 25 years (t=25); a total of 13 payments.

If the interest rate is 15% (EAR), what is the present value (value today at t=0)

of these Lottery Prizes?

(1+.15)^2-1= 0.3225 ( understand portion but don't know how to do the rest)

Posted Date: May 13, 2024 12:17 AM

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Receive payments every other year of $1,000 for the next 25 years. First payment is made in

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To calculate the present value of the lottery prizes we can use the form... View the full answer

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