All Else Equal,if the Interest Rate Is 5%,what Is the PDV

question 69

Multiple Choice

All else equal,if the interest rate is 5%,what is the PDV of a lottery prize that pays $1,000,000 today and $1,000,000 each year for the next 19 years?

• A) $10,500,000
• B) $12,462,210
• C) $13,085,321
• D) $20,000,000

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