What is the present value of winnings

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Point 1: You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $530,000 per year. Thus, in one year you receive $1.53 million. In two years, you get $2.06 million, and so on.

Question 1: If the appropriate interest rate is 6.3 percent, what is the present value of your winnings?

Reference no: EM132496163

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