3. You win the lottery and select the option to receive 20 yearly payments of on

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1.     You win the lottery and select the option to receive 20 yearly payments of one million dollars (an ordinary annuity).  If today is January 1, 2016, and the first payment is made January 1, 2017, what will be the value of the remaining six payments on January 2, 2030 if the interest rate is 5%? (Hint: use the ordinary annuity formula with the number of payments remaining from January 2, 2030 until the 20th overall payment.)

Jul 23rd, 2015

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2563569.4 is answer.
The details are given in the file.

npv 2372015.xls 


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Jul 23rd, 2015

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