A major lottery advertises that it pays the winner 10, Ask an Expert

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A major lottery advertises that it pays the winner $10 million. However this prize money is paid at the rate of $500,000 each year (with the first payment being immediate) for a total of 20 payments. What is the present value of this prize at 10% interest compounded annually?

Report your answer in $millions, rounded to two decimal places.

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Financial Management, Finance

Category:- Financial Management
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