You have won a state lottery prize quoted as “$12 million dollar lottery”, what this really mean is that if you take the monthly payments of $50,000 for 20 years, you will have a total payout of $12 million. If the appropriate interest (discount) rate is 6.6% APR, what would be the cash payout on this lottery today?
You have won a state lottery prize quoted as “$12 million dollar lottery”, what this really mean is that if you take the monthly payments of $50,000 for 20 years, you will have a total payout of $12 million. If the appropriate interest (discount) rate is 6.6% APR, what would be the cash payout on this lottery today?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You have won a state lottery prize quoted as “$12 million dollar lottery”, what this really mean is that if you take the monthly payments of $50,000 for 20 years, you will have a total payout of $12 million. If the appropriate interest (discount) rate is 6.6% APR, what would be the cash payout on this lottery today?
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Hi - I just want to double check that you should include the 12,000,000 in the futue value rather than use
I thought the present value of
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