You have just won a lottery! You will receive $50,000 a year beginning one year from now for 20 years. If your required rate of return is 10%, what is the present value of your winning lottery ticket?
A) $418,250
B) $425,700
C) $444,640
D) $453,850

Question

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The Answer of You have just won a lottery! You will receive $50,000 a year beginning one year from now for 20 years. If your required rate of return is 10%, what is the present value of your winning lottery ticket?
A) $418,250
B) $425,700
C) $444,640
D) $453,850

You Have Just Won a Lottery! You Will Receive $50,000