You have won
$ 600 comma 000$600,000
in a lottery. Your winnings will be paid to you in equal annual year-end installments of
$ 30 comma 000$30,000
over
2020
years. You estimate that you can earn
88%
on your investments. The present value of your
$ 600 comma 000$600,000
winnings would be closest to (If using present value tables, use factor amounts rounded to three decimal places, X.XXX. Round your final answer to the nearest whole dollar.)
LOADING...
(Click the icon to view Present Value of $1 table.)
LOADING...
(Click the icon to view Present Value of Ordinary Annuity of $1 table.)
A.
$ 294 comma 540$294,540.
B.
$ 630 comma 000$630,000.
C.
$ 305 comma 460$305,460.
D.
$ 600 comma 000$600,000.
Homework Answers
The present value of winnings have been calculated using the PV function:-
=PV(rate,nper,pmt)
=PV(8%,20,30000)
=294,540
Add Answer to:
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