What is present value of your winnings

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Reference no: EM131859532

1. You have won the lottery and will receive 20 annual payments of $10,000 starting today. If you can invest these payments at 8.5%, what is the present value of your winnings? (round to the nearest dollar)

2. Annuity due: Your inheritance will pay you $100,000 a year for five years beginning now. You can invest it in a CD that will pay 7.75 percent annually. What is the present value of your inheritance? (Round to the nearest dollar.)

Reference no: EM131859532

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