What is the present value of your prize at a discount rate


You just won a lottery and you opted to receive never-ending payments as your prize. The first payment will be $58,000 and will be paid one year from today. Every year thereafter until the end of time, the payments will increase by 2.8 percent annually. What is the present value of your prize at a discount rate of 12.9 percent?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the present value of your prize at a discount rate
Reference No:- TGS02304544

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)