11.1

1. An Arizona woman won the lottery with a $1,305,536 prize. The prize is paid in 20 equal annual installments. Enhance Financial has offered to pay her a lump sum now in return for the next 9 payments. What is Enhance willing to pay if the interest rate is 9.5%, compounded annually? Assume the next payment is one year from now. (2 pts)

Show Answer

Back to Practice Problems