You just won the TVM Lottery. You will receive $80 million today plus another 20 annual...

You just won the TVM Lottery. You will receive $80 million today plus another 20 annual payments that increase by $4,000,000 per year. starting from this year. If the appropriate interest rate is 6.5 percent, what is the value of your winnings today?

Expert Solution

HI

Below are the excel formulas and values for finding the value of winning:

hence Value of winning is $1,334,327,942.25

Thanks

jeff jeffy answered 1 year ago

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