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You win the lottery and must decide how to take the payout. Use an 8​% discount...

You win the lottery and must decide how to take the payout. Use an 8​% discount rate. What is the present value of $ 15,000 a year received at the end of each of the next six ​years? ​(The present value of annuity for this scenario 4.623​.)

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Answer #1

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=15000[1-(1.08)^-6]/0.08

=15000*4.623

which is equal to

=$69345

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