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1. You just won the lottery and you were told that you'd receive 10 annual after-tax...

1. You just won the lottery and you were told that you'd receive 10 annual after-tax payments of $145,833 each. The first payment will be received today (and the last payment will be received at the beginning of the 10th year). The payments will be deposited into a bank account that pays 7.88% interest rate compounded annually. What do you expect to have at the end of year 10 (if you do not withdraw any money from the account throughout 10 years)?

Please round your answer to the second decimal without dollar sign. E.g. 1.11

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Answer #1

rate positively ..

Put in calculator, set the calculator at BEGIN mode
PV 0
PMT -145833
I 7.88%
N 10
Compute FV $983,869.97
ans = 983,869.97
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