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hodyreva [135]
3 years ago
14

You have just received notification that you have won the $1.25 million first prize in the Centennial Lottery. However, the priz

e will be awarded on your 100th birthday, 79 years from now. The appropriate discount rate is 6.4 percent. What is the present value of your winnings
Business
1 answer:
MrRa [10]3 years ago
5 0

Answer:

$9,300.82

Explanation:

The formula for calculating present value:

P = FV (1 + r)^-n

FV = Future value = $1.25 million

P = Present value

R = interest rate = 6.4 percent.

N = number of years = 79

1.25 (1.064)^-79 = $9,300.82

I hope my answer helps you

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Explanation:

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g Money is best defined as whatever serves society in three functions: medium of exchange, store of value, and unit of account.
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Money is best defined as whatever serves society in three functions: medium of exchange, store of value, and unit of account.

Barter is best defined as a situation where two individuals each want some or service that the other can provide.

A double coincidence of wants is a situation where two individuals each want some or service that the other can provide.

<h3>What is money?</h3>

Money is anything that is  accepted by the general public as a means of payment for products and for repayment of debt.

<h3>What are the functions of money?</h3>
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<h3>What is barter?</h3>

Barter is when people exchange goods with goods. For barter to occur, there has to be a double coincidence of wants. This means that someone has to have what you want and that person wants what you have.

To learn more about money, please check: brainly.com/question/940436

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2 years ago
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