What is the present value of winnings with discount rate
Problem:
The USA Sweepstakes has informed Nancy that she won $1 million. The amount is to be paid out at a rate of $50,000 a year for the next 20 years. What is the present value of her winnings with a discount rate of 12 percent?
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What is the present value of her winnings with a discount rate of 12 percent?
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