A state lottery commission pays the winner of the "Million Dollar" lottery 10 annual installments of $40,000 each. If the prevailing interest rate is 5% / year compounded continuously, find the present value of the winning ticket. Round your answer to the nearest dollar.
A) $316,918
B) $310,454
C) $316,009
D) $314,775

Question

Quizplus · Accepted Answer

The Answer of A state lottery commission pays the winner of the "Million Dollar" lottery 10 annual installments of $40,000 each. If the prevailing interest rate is 5% / year compounded continuously, find the present value of the winning ticket. Round your answer to the nearest dollar.
A) $316,918
B) $310,454
C) $316,009
D) $314,775

A State Lottery Commission Pays the Winner of the "Million