Calculate the net present value of a lottery win
Question: Calculate the net present value of a $250,000 lottery win paid in equal annual installments over 5 years assuming a discount rate of 4%.
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If the interest rate was 8 percent, how much would you have been prepared to bid for the prize?
Calculate the net present value of a $250,000 lottery win paid in equal annual installments over 5 years assuming a discount rate of 4%.
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