You recently won a contest sponsored by a local radio station.The radio station will pay you $2,500 at the end of each of the next 15 years.Assuming an interest rate of 3%,what is the present value of this prize?

Name: You recently won a contest sponsored by a local radio station.The radio station will pay you $2,500 at the end of each of the next 15 years.Assuming an interest rate of 3%,what is the present value of this prize?
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Quizplus · Accepted Answer

B)Present value annuity @ 3% for 15 yrs = 11.938 × 2,500 = $29,845

You Recently Won a Contest Sponsored by a Local Radio