Question

You have won the state lottery. There are two ways in which you can receive your prize. You can either have $1 million in cash now, or you can have $1.2 million that is paid out as follows: $300,000 now, $300,000 in one year’s time, $300,000 in two years’ time, and $300,000 in three years’ time. The interest rate is 20%. The present value of the payments over three years is:

Answer 1

Answer:

pv=z/(1+R)^N

Step-by-step explanation:

I hope this helps!!!