Posted by **Nick** on Sunday, December 12, 2010 at 6:35pm.

A lottery prize worth $1,000,000 is awarded in payments of $10,000 five times a year for 20 years. Suppose the money is worth 20% compounded five times per year.

What is the formula used to find the present value of the prize?

## Answer This Question

## Related Questions

- math - Suppose a state lottery prize of $2 million is to be paid in 20 payments ...
- Statisics - The state lottery claims that its grand prize is $1 million. The ...
- Statisics - The state lottery claims that its grand prize is $1 million. The ...
- Statistics - The state lottery claims that its grand prize is $1 million. The ...
- Calculus - Compound Interest - Recently, a certain bank offered a 10-year CD ...
- math - The Derr-McGee Manufacturing Company plans to build a new $50,000 ...
- MBA Finance - Sally has won the grand prize in a lottery and must choose between...
- Math - A house worth $350,000 when purchased was worth $335.000 after the first...
- Economics - A $90,000 investment is made. Over a 5 year period, a return of $30,...
- Business Calc - Determine when, to the nearest year, $3,000 invested at 5% per ...

More Related Questions