Present Value of 1 Future Value of 1

question 45

Multiple Choice

Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 Sheryl Frasier has won the Indiana state lottery when the jackpot was $9 million. She has chosen to take the prize winnings as $1 million per year over the next nine years. Using a 7% annual interest rate, determine the present value of the $1 million annuity Sheryl will receive.

• A)$9,000,000
• B)$8,370,000
• C)$6,515,200
• D)$5,670,000
• E)$4,895,100