Homework answers / question archive / A $1,000,000 lottery prize pays $50,000 per year for the next 20 years

A $1,000,000 lottery prize pays $50,000 per year for the next 20 years

Business

Share With

A $1,000,000 lottery prize pays $50,000 per year for the next 20 years. If the current rate of return is 3.75%, what is the present value of this prize? (Assume the lottery pays out as an ordinary annuity. Round your answer to the nearest cent.)