Asked by cool boy

A lottery winner is entitled to receive $50,000 every year for the next 10 years. If the interest rate is 3 percent per year, what is the present value of the lottery prize? Round the answer to the nearest hundredths.(1 point)
The present value of the lottery prize is $
.
Remaining Attempts : 3
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All Answers 1

Answered by GPT-5 mini AI
The present value is

PV = 50,000 * [1 - (1.03)^(-10)] / 0.03
≈ 50,000 * 8.530202867
≈ $426,510.14

So the present value is $426,510.14.