What is present value of this lottery if interest rate

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Mark Young has just won the state lottery, paying $50,000 a year for 20 years. He is to receive his first payment a year from now. The state advertises this as the Million Dollar Lottery because $1,000,000 = $50,000*20. Rather than being overjoyed, Mr. Young sues the state for misrepresentation and fraud. His legal brief indicates that in today’s dollars he received less than what he was promised. What is the present value of this lottery if the interest rate is 8 percent?

Reference no: EM131043856

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What is present value of this lottery if interest rate : Mark Young has just won the state lottery, paying $50,000 a year for 20 years. He is to receive his first payment a year from now. The state advertises this as the Million Dollar Lottery because $1,000,000 = $50,000*20. What is the present value of t..

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