2007-04-22 16:19:18 · 2 answers · asked by AG 1 in Business & Finance ➔ Personal Finance
required rate of return is 10%, what is the present value of your winning lottery ticket?
2007-04-22 16:34:03 · update #1
That depends upon how you intend to collect it and what you intend to do with it. It has a face value of $50,000 in today's money. You can sell it for that. You can take the payments for 20 years and try to figure the depreciation of the dollar during that time combined with the interest earned. That is beyond my ability. I believe that inflation is around 3 percent on average. That means you'll come out a little ahead, but only a little.
2007-04-22 16:30:04 · answer #1 · answered by Jack 7 · 0⤊ 1⤋
Now aint that something I dont know if Im that! There is always an upside and a down side to everything I guess.
2007-04-22 16:23:36 · answer #2 · answered by lovie12346 3 · 0⤊ 0⤋