Suppose you win a lottery that pays you $500,000 a year for the next 30 years. You
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose you win a lottery that pays you $500,000 a year for the next 30 years. You will receive the first payment exactly one-year from today, the second two years from today and so on. If the current interest rate is 4%, what could you sell your lottery win for (i.e., what is its present value?)
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date: