Suzie just won the lottery! As her prize,she will receive $2,500 a month for 10 years.The first payment will be paid today.At 6 percent,compounded monthly,what is this prize worth to her today?

Question

Quizplus · Accepted Answer

PV = [$2,500({1 - 1 / [1 + (0.06 / 12)]¹⁰^×12} / (0.06 / 12))× [1 + (0.06 / 12)] = $226,309.55 2^nd PMT 2^nd SET 11ea6c22_9308_3d91_9716_e38b36b816d2_TB1200_00

Suzie Just Won the Lottery! as Her Prize,she Will Receive