Annuity per month (P)= 2000
interest rate per month (i)= 7%/12 or
0.005833333333
time for Annuity (n)= 10*12= 120
Present Value of ordinary annuity formula = (Annuity
*(1-(1/(1+i)^n))/i)
2000*(1-(1/(1+0.0058333333)^120))/0.00583333333
172252.7083
So Present worth of prize is $172,252.71
Note: separate first question is Answered as HOMEWORKLIB
policy
Question 6 You just won the grand prize in a national writing contest! As your prize,...
You just won the grand prize in a national writing contest As your prize, you will receive $2,000 a month for ten years. If you can eam 11 percent APR on your money. what is this prize worth to you today? O A $11,778.46
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You just won the grand prize in a national writing contest! As your prize, you will receive $500 a month for 50 months. If you can earn 7 percent on your money, what is this prize worth to you today?
you just won the grand prize in a national writing contest as your prize you will receive $2,000 a month for 10 years if you can earn 7% on your money what is this prize worth to you today
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