On January 1. you win $60.000.000 in the state lottery. The $60.000.000 prize will be paid in equal installments of $6.000.000 over 10 years. The payments will be made on December 31 of each year beginning on December 31 of the current year. If the current interest rate is 10%. determine the present value of your winnings. Use present value tables. Round to the nearest whole dollar.

On January 1. you win $60.000.000 in the state lottery. The $60.000.000 prize will be paid in equal installments of $6.000.000 over 10 years. The payments will be made on December 31 of each year beginning on December 31 of the current year. If the current interest rate is 10%. determine the present value of your winnings. Use present value tables. Round to the nearest whole dollar.

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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