You just won the magazine sweepstakes and opted to take


You just won the magazine sweepstakes and opted to take unending payments. The first payment will be $35,000 and will be paid one year from today. Every year thereafter, the payments will increase by 2% annually. What is the present value of your prize at a discount rate of 6%?

  • 775,000
  • 350,000
  • 875,000
  • 455,000
  • 556,000

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Business Management: You just won the magazine sweepstakes and opted to take
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