Respuesta :
Answer:
$9,300.82
Explanation:
The formula for calculating present value:
P = FV (1 + r)^-n
FV = Future value = $1.25 million
P = Present value
R = interest rate = 6.4 percent.
N = number of years = 79
1.25 (1.064)^-79 = $9,300.82
I hope my answer helps you
The present value of the winning should be $9300.82.
Calculation of the present value:
We know that
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
So,
[tex]=1,250,000\div 1.064^{79}\\\\=1,250,000\times 0.00744065882[/tex]
=$9300.82
hence, The present value of the winning should be $9300.82.
Learn more about rate here: https://brainly.com/question/24317041
