You just won the lottery! As your prize you will receive $1,500 a month for 150 months. If you can earn 7 percent, compounded monthly, on your money, what is this prize worth to you today

the worth of the prize today is $150000

Step-by-step explanation:

We would apply the formula for determining present annuity. It is expressed as

PV = R[1 - (1 + r)^- n]r

Where

PV represents the present value of the investment.

R represents the regular payments made(could be weekly, monthly)

r = represents interest rate/number of interval payments.

n represents the total number of payments made.

From the information given,

r = 0.07/12 = 0.0058

n = 150

Therefore,

PV = 1500[1 - (1 + 0.0058)^- 150]/0.0058

PV = 1500[1 - (1.0058)^- 150]/0.0058

PV = 1500[1 - 0.42]/0.0058

PV = 1500[0.58]/0.0058

PV = 1500 × 100

PV = $150000

$149,676.91

Step-by-step explanation:

A = P(1+r/n)ⁿt

Principal = $1500

r=7% = 7/100 = 0.07

answer: 10 meter

step-by-step explanation:

need details