You just won the lottery. The prize is 20 equal payments of $50,000 with the first...

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You just won the lottery. The prize is 20 equal payments of $50,000 with the first...

You just won the lottery. The prize is 20 equal payments of $50,000 with the first to be received today. What is the present value of the prize if the discount rate is 8%?

___________________________________________
____________________
50,000 ___________
____ N
____ 1/Y
CPT _______
Answer: _________________

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Answer 1

Answer #1

Set the and calculator in beginning Pmt and Enter. mode N = 20 PMT = 50,000 1/4= 8 CPT PV - 530179.96 . Present value = $5301

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Answer 2

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