Solved

You Just Won the Lottery

Question 140

Multiple Choice

You just won the lottery. You and your heirs will receive $25,000 per year forever, beginning one year from now. What is the present value of your winnings at an 8% discount rate?


A) $182,500
B) $200,000
C) $287,500
D) $312,500
E) $337,500

Correct Answer:

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