Question

Asked Nov 9, 2019

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YOU WIN $500,000 do you want to be paid out all at once or do you want to receive annual end of year payments of $33,000 for 20 years. you can earn 3% per year, what is the persent value of the annuity stream.

Step 1

**Calculation of Present Value of Annuity Stream:**

The present value of annuity stream is ** $490,956.67**.

**Excel Spreadsheet:**

Step 2

**Excel Workings:**

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