Please help with the following:?

0 ⤊

Please help with the following:?

Joe won a lottery jackpot that will pay him $12,000 each year for the next ten years. If the market interest rates are currently 12%, how much does the lottery have to invest today to pay out this prize to Joe over the next ten years?

2006-10-10 13:10:01 · 2 answers · asked by msbrnsgr1 1 in Business & Finance ➔ Personal Finance

2 answers

financial calculator N=10, I/Y=12%, PMT=12000, FV=0, PV=67802.68. So to answer another way, the lottery has to invest 67,802.68 earning 12% to make those payments to Joe.

2006-10-13 19:35:51 · answer #1 · answered by Mr. ARJ 2 · 0⤊ 0⤋

repost your question in the homework section, and maybe they can help you

2006-10-12 20:14:56 · answer #2 · answered by dredude52 6 · 0⤊ 0⤋