present value question
Question Description
1.
Lottery Ticket
Win! You win the lottery and are
promised by the Lottery Commission $12,000 a year for 6 years, starting next
year. Assume the interest rate is 9%.
What is the present value of this prize?
Question Description
1. Lottery Ticket Win! You win the lottery and are promised by the Lottery Commission $12,000 a year for 6 years, starting next year. Assume the interest rate is 9%. What is the present value of this prize?