present value question

Economics
Tutor: None Selected Time limit: 1 Day

1.       Lottery Ticket Win!  You win the lottery and are promised by the Lottery Commission $12,000 a year for 6 years, starting next year. Assume the interest rate is 9%.  What is the present value of this prize?

Feb 24th, 2015

=pv(0.09, 6, -12000)= 53831.02

$ 53,831

Feb 24th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Feb 24th, 2015
...
Feb 24th, 2015
May 24th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer