Answer:
Option B (150) is the correct answer.
Explanation:
Given:
Nominal GDP,
= $900
Money velocity,
= 6
As we know,
⇒
By putting the vales, we get
⇒
⇒
⇒
You just won the lottery. Congratulations! The jackpot is $85,000,000, paid in 10 equal annual payments. The first payment on th
e lottery jackpot will be made today. In present value terms, you really won assuming annual interest rate of 6.50%.
1 answer:
Answer:
$65,076,885.59
Explanation:
We use the Present value formula that is shown in the spreadsheet attachment
Given that,
Future value = $0
Rate of interest = 6.5%
NPER = 10 years
PMT = $85,000,000 ÷ 10 annual payments = $8,500,000
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $65,076,885.59
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