You have won the lottery and will receive 20 annual payments of $10,000 starting today. If you can invest these payments at 8.5%, what is the present value of your winnings?

$102,677.20

Step-by-step explanation:

The present value of an annuity due is determined by the following expression:

Where 'P' is the amount of each payment received, 'r' is the interest rate on the investment and 'n' is the number of yearly payments.

With 20 annual payments of $10,000 at a rate of 8.5%, the present value is:

The present value of your winnings is $102,677.20.

step-by-step explanation:

you can add the two numbers and divide the result by 2. or you can find the gap between the two numbers and add half of this to the smaller number.