Economics: A Contemporary Introduction 9th Edition by William McEachern

تمرين 6

PRESENT VALUE OF AN ANNUITY Suppose you are hired by your state government to determine the profitability of a lottery offering a grand prize of $10 million paid out in equal annual installments over 20 years. Show how to calculate the cost to the state of paying out such a prize. Assume payments are made at the end of each year.