What is the present value of winnings

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The $32.5 million lottery payment that you have just won actually pays $1.3 million per year for 25 years. The interest rate is 10%.

a. If the first payment comes in 1 year, what is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in dollars, not millions, rounded to 2 decimal places.)

b. What is the present value if the first payment comes immediately? (Do not round intermediate calculations. Enter your answer in dollars, not millions, rounded to 2 decimal places.)

Reference no: EM131982642

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