An investment will pay you $5,500 in 10 years, and it will also pay you...
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An investment will pay you $5,500 in 10 years, and it will also pay you $210 at the end of each of the next 10 years (years 1 thru 10). If the annual interest rate is 6%, how much would you be willing to pay today for this type of investment?
A college student is reported in the newspaper as having won $6,000,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $6.0 million now. Instead she will receive $300,000 at the end of the year for each of the next 20 years. If the annual interest rate is 7%, what is the present value (todays amount) that she won? (ignore taxes)
Thanks.
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