You win the lottery and must decide how to take the payout. Usea 6% discount rate. What is the present value of $20,000 a yearreceived at the end of each of the next eight years?
Present Value of $1
Periods
4%
6%
8%
10%
12%
5
0.822
0.747
0.681
0.621
0.567
6
0.790
0.705
0.630
0.564
0.507
7
0.760
0.665
0.583
0.513
0.452
8
0.731
0.627
0.540
0.467
0.404
9
0.703
0.592
0.500
0.424
0.361
10
0.676
0.558
0.463
0.386
0.322
Present Value of Annuity of $1
Periods
4%
6%
8%
10%
12%
5
4.452
4.212
3.993
3.791
3.605
6
5.242
4.917
4.623
4.355
4.111
7
6.002
5.582
5.206
4.868
4.564
8
6.733
6.210
5.747
5.335
4.968
9
7.435
6.802
6.247
5.759
5.328
10
8.111
7.360
6.710
6.145
5.650
You win the lottery and must decide how to take the payout. Use a 6% discount rate. What is the present value of $20,00
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