Simple Lottery

busstudent · #1 Feb 10, 2008, 06:51 PM

The problem:

You just won the lottery. The jackpot is 10 million, paid in 20 equal, annual payments starting today. In present-value terms, how much did you really win? Use an annual interest rate of 6.6%.

Any clues?

JBeaucaire · Feb 10, 2008, 07:29 PM

I get about 4.3 million.



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