You win the lottery and must decide how to take the payout.Use an 8% discount rate. What is the present value of $10,000 a year received at the end of each of the next six years?

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The present value of an annuity is the sum of the present values of each of the individual payments. The present value of each payment is calculated by dividing the payment by (1 + r)^n, where r is the discount rate and n is the number of years from now that the payment will be received. In this case, the discount rate is 8% and the payments will be received at the end of each of the next six years. So, the present value of each payment is:PV = $10,000 / (1 + 0.08)^nThe present value of the annuity is the sum of the present values of each of the individual payments:PV = $10,000 / (1 + 0.08)^1 + $10,000 / (1 + 0.08)^2 + $10,000 / (1 + 0.08)^3 + $10,000 / (1 + 0.08)^4 + $10,000 / (1 + 0.08)^5 + $10,000 / (1 + 0.08)^6PV = $46,230

You Win the Lottery and Must Decide How to Take