You have just won the Super Duper Lotto. Although the prize is advertised as $30 million, you actually get $10 million now and $1 million per year for the next 20 years (starting one year from now). Your discount rate is 6%. What is present value of your winnings? (Do not round intermediate calculations. Report your result in millions of dollars. Round the final answers to 2 decimal places. Omit $ sign and the word “million” in your response. For example, if your answer is $1,234,567 just write 1.23.)
You have just won the Super Duper Lotto. Although the prize is advertised as $30 million, you actually get $10 million now and $1 million per year for the next 20 years (starting one year from now). Your discount rate is 6%. What is present value of your winnings? (Do not round intermediate calculations. Report your result in millions of dollars. Round the final answers to 2 decimal places. Omit $ sign and the word “million” in your response. For example, if your answer is $1,234,567 just write 1.23.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 6P
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You have just won the Super Duper Lotto. Although the prize is advertised as $30 million, you actually get $10 million now and $1 million per year for the next 20 years (starting one year from now). Your discount rate is 6%. What is
(Do not round intermediate calculations. Report your result in millions of dollars. Round the final answers to 2 decimal places. Omit $ sign and the word “million” in your response. For example, if your answer is $1,234,567 just write 1.23.)
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