The USA Sweepstakes has informed Nancy that she won $1 million. The amount is to be paid out at a rate of $50,000 a year for the next 20 years. What is the present value of her winnings with a discount rate of 12 percent?© BrainMass Inc. brainmass.com June 3, 2020, 10:15 pm ad1c9bdddf
The payments are an annuity and so we have to find the present value of the ...
The solution explains how to calculate the present value of winnings