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Determine the present value of your winnings

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Question - On January 1, you win $60,000,000 in the state lottery. The $60,000,000 prize will be paid in equal installments of $6,000,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31 of the current year. If the current interest rate is 10%, determine the present value of your winnings. Will the present value of your winnings using an interest rate of 10% be more than the present value of your winnings using an interest rate of 6%?

Reference no: EM132499205

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