You win a lottery that pays $10,000 each year for the next 5 years beginning next year. How much are your winnings worth today

$43,294.77

Explanation:

Here is the full question used in answering this quetion :

You win a lottery that pays $10,000 each year for the next 5 years beginning next year. How much are your winnings worth today if the market interest rate is 5%?

Present value is the sum of discounted cash flows

PV can be calculated with a financial calculator

Cash flow in year 1 - 5 = $10,000

i = 5%

PV = $43,294.77

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi