Rita Gonzales won the $44 million lottery. She is to receive $1.3 million a year for...

Rita Gonzales won the $44 million lottery. She is to receive $1.3 million a year for the next 25 years plus an additional lump sum payment of $11.5 million after 25 years. The discount rate is 18 percent.

Expert Solution

Solution :

The present value of the payments to be received by Ms. Rita Gonzales = $ 7,290,482.50

= $ 7,290,483 ( when rounded off to the nearest whole number )

Please find the attached screenshot of the excel sheet containing the detailed calculation for the above solution.

jeff jeffy answered 1 year ago

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