Kevin won a lottery that will pay him $620000 at the end of each of the next twenty years. Assuming an appropriate interest rate is 9% compounded annually, what is the present value of this amount? $110627. $6169073. $5659701. $31719274.

Kevin won a lottery that will pay him $620000 at the end of each of the next twenty years. Assuming an appropriate interest rate is 9% compounded annually, what is the present value of this amount? $110627. $6169073. $5659701. $31719274.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Question

Kevin won a lottery that will pay him $620000 at the end of each of the next twenty years. Assuming an appropriate interest rate is 9% compounded annually, what is the present value of this amount?

$110627.

$6169073.

$5659701.

$31719274.

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