What is the present value of your winnings

Reference no: EM13271294

You have just won the Reader's Digest lottery of $5,000 per year for twenty years, with the first payment today followed by nineteen more start-of-the-year cash flows. At an interest rate of 5%, what is the present value of your winnings?

A) $62,311.05 B) $100,000.00 C) $65,426.60 D) $47,641.18

Reference no: EM13271294

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