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Suppose the Winner of a $4,000,000 Sweepstakes Will Be Paid

Question 23

Multiple Choice

Suppose the winner of a $4,000,000 sweepstakes will be paid $100,000 per year for 40 years, starting a year from now. The money earns 5% interest per year. The present value of the winnings is Suppose the winner of a $4,000,000 sweepstakes will be paid $100,000 per year for 40 years, starting a year from now. The money earns 5% interest per year. The present value of the winnings is Compute the present value using the formula for the nth partial sum of a geometric series. Round your answer to two decimal places. A) $6,852,274.09 B) $1,959,646.05 C) $4,568,182.73 D) $1,246,221.03 E) $1,715,908.64 Compute the present value using the formula for the nth partial sum of a geometric series. Round your answer to two decimal places.


A) $6,852,274.09
B) $1,959,646.05
C) $4,568,182.73
D) $1,246,221.03
E) $1,715,908.64

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