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    sara2162's Avatar
    sara2162 Posts: 1, Reputation: 1
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    #1

    Jan 18, 2015, 06:36 PM
    Determine the present value of your winnings.
    On January 1, 2014, you win $75,000,000 in the state lottery. The $75,000,000 prize will be paid in equal installments of $7,500,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31, 2014. If the current interest rate is 12%, determine the present value of your winnings. Use Table 2. Round to the nearest whole dollar.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    Jan 19, 2015, 12:23 PM
    You need calculate the present value for each of the ten payments. I'm sure the formula is in your test book. Calculate the PV for each year's payment, and sum them up.
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