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You have just won a $156,000 lottery. You will receive $100 per week for the next...


You have just won a $156,000 lottery. You will receive $100 per week for the next 30 years, with the first payment to be received today. If the interest rate is 5% per annum compounded weekly, what is the present value of this payment stream?

Is it possible that anyone is able to show me instructions on how to do this with a BA II Plus Texas instruments calculator?

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Answer #1

Rate = 5%/52,
So I/Y = 5%/52 ( donot put % in I/Y in calculator)
Number of Periods(N) = 30*52 = 1560
PMT = 100

N = 1580 I/Y = 5/52 PMT = -100 CPT PV = 80,777.73

Please Discuss in case of Doubt

Best of Luck. God Bless
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