Suppose the winner of a $4,000,000 sweepstakes will be paid $100,000 per year for 40 years, starting a year from now. The money earns 5% interest per year. The present value of the winnings is Compute the present value using the formula for the nth partial sum of a geometric series. Round your answer to two decimal places.
A) $6,852,274.09
B) $1,959,646.05
C) $4,568,182.73
D) $1,246,221.03
E) $1,715,908.64

Question

Suppose the winner of a $4,000,000 sweepstakes will be paid $100,000 per year for 40 years, starting a year from now. The money earns 5% interest per year. The present value of the winnings is  Compute the present value using the formula for the nth partial sum of a geometric series. Round your answer to two decimal places.
A) $6,852,274.09 
B) $1,959,646.05 
C) $4,568,182.73 
D) $1,246,221.03 
E) $1,715,908.64

Quizplus · Accepted Answer

The Answer of Suppose the winner of a $4,000,000 sweepstakes will be paid $100,000 per year for 40 years, starting a year from now. The money earns 5% interest per year. The present value of the winnings is  Compute the present value using the formula for the nth partial sum of a geometric series. Round your answer to two decimal places.
A) $6,852,274.09 
B) $1,959,646.05 
C) $4,568,182.73 
D) $1,246,221.03 
E) $1,715,908.64

Suppose the Winner of a $4,000,000 Sweepstakes Will Be Paid