Question

A lottery winner will receive $5 million at the end of each of the next fourteen years. What is the future value​ (FV) of her winnings at the time of her final​ payment, given that the interest rate is 8.2​% per​ year?

Answer 1

$122,821,129.69

Step-by-step explanation:

For computing the future value we need to apply the future value formula i.e to be shown in the attachment below:

Provided that,

Present value = $0

Rate of interest = 8.2%

NPER = 14 years

PMT = $5,000,000

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after applying the above formula, the future value is $122,821,129.69