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Equivalent lump-sum payment for Shelley's winning lottery

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Shelley wants to cash in her winning lottery ticket. She can either receive 10, $100,000 semiannual payments starting today, or she can receive a lump-sum payment now based on a 6% annual interest rate. What is the equivalent lump-sum payment?

a. $853,020
b. $801,969
c. $744,090
d. $878,611

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Here we have to find out the present value of ...

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Solution explains the computation of equivalent lump-sum payment for Shelley's winning lottery ticket

$2.19