You have just won the lottery and will receive $570,000 in one year. You will receive payments for 17 years, which will increase 5 percent per year. The appropriate discount rate is 10 percent.
What is the present value of your winnings?
a) $5,981,294
b) $112,771
c) $13,739,835
d) $13,739,835
$6,230,515