Marlene won 20 million dollars, but the prize is actually 2 million paid over 10 years. If the payments are 10-beginning-of-year payments and the discrete interest rate is 5%, what is the equivalent total amount she would receive if she took a single payment? NOTE: since payments are end of year, she has 9 end of year payments plus the initial first payment.

Marlene won 20 million dollars, but the prize is actually 2 million paid over 10 years. If the payments are 10-beginning-of-year payments and the discrete interest rate is 5%, what is the equivalent total amount she would receive if she took a single payment? NOTE: since payments are end of year, she has 9 end of year payments plus the initial first payment.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

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