Problem
We have all heard about winners of $10 million jackpot lotteries. The winner, however, does not get $10 million in cash on the spot, but rather typically gets a measly $500,000 for twenty years. Why is the present discounted value of the prize much less than $10 million? Calculate the present discounted value if r = 5 percent.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.