What is present value of your winnings

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Reference no: EM131336215

You have just won the Play-to-win Lottery, which pays you $1 million today and another 10 annual payments that increase by $400,000 per year. Therefore, in one year, you receive $1.4 million, in two years you get $1.8 million and so on. If the appropriate interest rate is 9 percent, what is the present value of your winnings?

Reference no: EM131336215

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