Rita Gonzales won the $41 milion lottery. She is to receive $1.8 million a year for...
Rita Gonzales won the $41 milion lottery. She is to receive $1.8 million a year for the next 15 years plus an additional lump sum payment of $14 million after 15 years. The discount rate is 11 percent.
What is the current value of her winnings? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Present value = _______
Homework Answers
We see that the current value of winnings is given as equal to=1.8/11%*(1-1/1.11^15)+14/1.11^15=15.86962608974 million
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