ohn-Paul Ramin won $2.6 million in a state lottery. He was surprised to learn that he will not receive a check for $2.6 million. Rather, for twenty years, he will receive an annual check from the state for 1/20 of his winnings. The state finances this series of checks by buying John-Paul a payout annuity. Find what the state pays for John-Paul's payout annuity if the interest rate is 7.2%. (Round your answer to the nearest cent.)
ohn-Paul Ramin won $2.6 million in a state lottery. He was surprised to learn that he will not receive a check for $2.6 million. Rather, for twenty years, he will receive an annual check from the state for 1/20 of his winnings. The state finances this series of checks by buying John-Paul a payout annuity. Find what the state pays for John-Paul's payout annuity if the interest rate is 7.2%. (Round your answer to the nearest cent.)
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 7E
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John-Paul Ramin won $2.6 million in a state lottery. He was surprised to learn that he will not receive a check for $2.6 million. Rather, for twenty years, he will receive an annual check from the state for 1/20 of his winnings. The state finances this series of checks by buying John-Paul a payout annuity. Find what the state pays for John-Paul's payout annuity if the interest rate is 7.2%. (Round your answer to the nearest cent.)
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