Congratulations, you just won the lottery! As the winner, you will receive payments of $2 million at the beginning of every year over the next 10years. The first payment will be paid out already today. What is the present value of your lottery winnings? Assume an interest rate of 5% per year. Answer in millions of dollars with 2 decimals (for example, if your answer is 12, 160, 000 enter 12.16).

Congratulations, you just won the lottery! As the winner, you will receive payments of $2 million at the beginning of every year over the next 10years. The first payment will be paid out already today. What is the present value of your lottery winnings? Assume an interest rate of 5% per year. Answer in millions of dollars with 2 decimals (for example, if your answer is 12, 160, 000 enter 12.16).

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 6P

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