You just won the $55 million Ultimate Lotto jackpot. Your winnings will be paid as $2,200,000 per...

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You just won the $55 millionUltimate Lotto jackpot. Your winnings will be paid as $2,200,000per year for the next 25 years. If the appropriate interest rate is5.5 percent, what is the value of your windfall?
$30,494,340.24
$31,133,737.70
$29,510,651.84
$28,933,737.70
$28,035,119.25

Answer & Explanation Solved by verified expert

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Correct Answer 2951065184 Calculations and Explanation Calculation of Present value of Windfall Year Yearly payments A Discounting Factor at 55 B Discounted Cash ABa 1 220000000 0947867 208530806 2 220000000 0898452 197659531 3 220000000 0851614 187355006 4 220000000 0807217 177587684 5 See Answer

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You just won the $55 millionUltimate Lotto jackpot. Your winnings will be paid as $2,200,000per year for the next 25 years. If the appropriate interest rate is5.5 percent, what is the value of your windfall?$30,494,340.24$31,133,737.70$29,510,651.84$28,933,737.70$28,035,119.25