A state lottery commission pays the winner of the "Million Dollar" lottery 20 annual installments of $50,000 each. If the prevailing interest rate is 6%/year compounded continuously, find the present value of the winning ticket. (Round your answer to two decimal places.)
A state lottery commission pays the winner of the "Million Dollar" lottery 20 annual installments of $50,000 each. If the prevailing interest rate is 6%/year compounded continuously, find the present value of the winning ticket. (Round your answer to two decimal places.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 3MC: Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of...
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A state lottery commission pays the winner of the "Million Dollar" lottery 20 annual installments of $50,000 each. If the prevailing interest rate is 6%/year compounded continuously, find the present value of the winning ticket. (Round your answer to two decimal places.)
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