What Is the Present Value of a Lottery Paid as an Annuity

question 87

Multiple Choice

What is the present value of a lottery paid as an annuity due for twenty years if the cash flows are $150,000 per year and the appropriate discount rate is 7.50%?

• A)$5,000,000.00
• B)$3,186,045.39
• C)$2,739,769.55
• D)$1,643,861.73

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