The state lottery has just informed you that you have won $1 million to be paid out in the amount of $50,000 per year for the next 20 years. With a discount rate of 12%, what is the present value of your winnings?
A) $221,950
B) $398,150
C) $373,450
D) $392,150

Question

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The Answer of The state lottery has just informed you that you have won $1 million to be paid out in the amount of $50,000 per year for the next 20 years. With a discount rate of 12%, what is the present value of your winnings?
A) $221,950
B) $398,150
C) $373,450
D) $392,150

The State Lottery Has Just Informed You That You Have