What is the present value of your winnings

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Reference no: EM132038216

1. You just won the lottery, which promises you $200,000.00 per year for the next 20 years, starting in one year. If your discount rate is 8.75%, what is the "present value" of your winnings?

$1,937,916

$2,021,652

$1,858,705

$1,993,634

$2,040,063

2. What is the future value of an ordinary annuity that pays $700 per year for 10 years? Use a nominal rate (monthly compounding) of 7.25%.

$9,901

$10,676

$9,953

$9,987

$9,981

Please show work/how to enter into calculator.

Reference no: EM132038216

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