Determine what is the actual payoff

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Suppose that you have just won a lottery with an advertised payoff of $20,000,000; however, there is a bit of a catch - you are not paid the $20,000,000 right away but in installments of $2,000,000 over 10 years. Assume the interest rate (and your discount rate) is 10 percent what is the actual payoff?

The correct answer is $13,518,048 (rounded to the nearest dollar)
But I keep getting $12,289,134 (rounded to the nearest dollar)

Reference no: EM13208409

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