Time value of money problem

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Time Value of Money Problem:

The prize in last week's Iligan lottery was estimated to be worth P30 million. If Jay-Ar Peñano is lucky enough to win, Iligan will pay him P1.5 million per year over the next 22 years. Assume that the first instalment is received immediately.

A. If interest rates are 8%, what is the present value of the prize?

B. If interest rates are 8%, what is the future value after 20 years?

Reference no: EM132406600

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