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Purchase the proceeds from the lottery

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Reference no: EM131113893

Chris Marlowe just won the state lottery which promises to pay him $1,500 per year for 20 years, starting from today, and $1,850 per year for years 21-45, given a 6.75% discount rate. Your company wants to purchase the proceeds from the lottery from Chris. What is the most that your company can offer?

a. $23,673.45
b. $22,176.53
c. $24,876.43
d. $18,484.98

Reference no: EM131113893

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