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# You won the 'set for life' lottery which promises to pay you $1,000 per month forever starting today. At the end of January of each year, you collect a bonus payment of $1,000 to make it easier to pay credit

You won the 'set for life' lottery which promises to pay you $1,000 per month forever starting today. At the end of January of each year, you collect a bonus payment of $1,000 to make it easier to pay credit card bills from the holidays. To make calculations easier suppose that today is Jan 1st. Your discount rate is 10% p.a. What is the present value of your prize money?

- Expert Answer

## To calculate the present value of your prize money we need to determine the present value of each ca View the full answer

**Related Book For**

## Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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