A lottery winner will receive $5 million at the end of each of the next fourteen years. What is the future value (FV) of her wi

Question

3 years ago

15

nnings at the time of her final payment, given that the interest rate is 8.2% per year?

1 answer:

tester [92] · Answer 1 · 2022-03-19T17:41:34+03:00

Answer:

$122,821,129.69

Explanation:

For computing the future value we need to apply the future value formula i.e to be shown in the attachment below:

Provided that,

Present value = $0

Rate of interest = 8.2%

NPER = 14 years

PMT = $5,000,000

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after applying the above formula, the future value is $122,821,129.69

A lottery winner will receive $5 million at the end of each of the next fourteen years. What is the future value​ (FV) of her wi