You win a state lottery, and you are promised to receive $100,000 a year for life (perpetuity).

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You win a state lottery, and you are promised to receive $100,000 a year for life (perpetuity). If you can earn 8% a year, what is the value today of your future payments? Show all work.

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Advanced Financial Accounting

ISBN: 978-0137030385

6th edition

Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay

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Posted Date: Jul 14, 2023 08:22 AM

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You win a state lottery, and you are promised to receive $100,000 a year for life (perpetuity).

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To calculate the present value of future payments we can use the formul... View the full answer

Advanced Financial Accounting

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