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I need help with solving this problem! How can I solve this problem with using a FINANCIAL calculator? Thank you in advance!
Hi, Could you show me how to solve problem #37 with only using a financial calculator please? Thank you in advance! prefer? Crowing Annuity (LO1) You have just won the lottery and will receive $1.500.000 in one year. You will receive payments for 30 years, and the payments will increase by 2.5 percent per year. If the appropriate discount rate is 7 percent, what is the pres- ent value of your winnings? 11 Vaurioh navs you only once a year for all the work you Do Expert Answer Anshul. 11 minutes later Present value of growing annuity = Amount/(r-g) *[1-{(1+9)/(1+r)}" ] = 1,500,000/(7%-2.5%) * [{1- (1+2.5%)/(1+7%)}30 ] = 33,333,333.33 * 0.724448 = $24,148,286.47 Hence, value of winnings today = $24,148,286.47 Do
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