Rita Gonzales won the $41 million lottery. She is to receive $2.1 million a year

Question

Rita Gonzales won the $41 million lottery. She is to receive $2.1 million a year for the next 15 years plus an additional lump sum payment of $9.5 million after 15 years. The discount rate is 8 percent. What is the current value of her winnings? Use Appendix B and Appendix D. (Round "PV Factor" to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.) Present value $ http://lectures.mhhe.com/connect/0073530727/Images/Appendix_D.JPG http://lectures.mhhe.com/connect/0073530727/Images/Appendix_B.jpg

Explanation / Answer

=2.1*8.559 = 17.97+15*.315 = 22.695 or 22.70 million

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