Description of this paper

You just won the TVM Lottery. You will receive $1 million today plus another

Description

solution


Question

You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $610,000 per year. Thus, in one year, you receive $1.61 million. In two years you get $2.22 million, and so on.;If the appropriate interest rate is 7.1 percent, what is the present value of your winnings?

 

Paper#28123 | Written in 18-Jul-2015

Price : $22
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