You have just won the lottery and will receive $1,000,000 in one year. You will

Question

You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 25 years and the payments will increase 2 percent per year.

  

If the appropriate discount rate is 6.0 percent, what is the present value of your winnings? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Present value = $ ??

You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 25 years and the payments will increase 2 percent per year.

Explanation / Answer

Present value = $15,443,526.25

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