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Present Value of Lottery Winnings

You have just received notification that you have won the $1.4 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday, 78 years from now. The appropriate discount rate is 8 percent. What is the present value of your winnings?

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Present Value:

You have just received notification that you have won the $1.4 million first ...

Solution Summary

Solution helps in estimating Present Value of Lottery Winnings

$2.19