The winner of a lottery chooses to receive annual payments of $140,000 at the end of each year for 25 years. If the current interest rate is 5.6%, find the present value (in dollars) of the payments. (Round your answer to the nearest cent. See Example 5 in this section.) $
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Step 1
- Annual payment (A) = $140,000 - Number of years (n) = 25 - Interest rate (r) = 5.6% = 0.056 Show more…
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