Lottery Monthly PV (due) You just won the lottery! As your prize you will receive $6,460 a month for 238 months starting today. If you can earn 12% APR, compounded monthly, on your money, what is this prize worth to you today?
Added by Debbie R.
Step 1
Step 1: Calculate the present value of each monthly payment using the formula for present value of an annuity: PV = PMT * ((1 - (1 + r)^-n) / r) Where: PV = Present Value Show more…
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