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Math Help - Present Value Question! Help!

  1. #1
    Junior Member
    Joined
    Feb 2009
    Posts
    30

    Present Value Question! Help!

    Hi, I'm having trouble with this question that deals with present value. I don't understand what it is asking for and I tried solving it using every formula I know (only 2) but still can't seem to get the answer as the back of the book.

    Here it is:
    Brooke won $100 000 in a lottery. The prize will be paid in yearly installments of $10 000 each year for 10 years. What is the present value of her winnings, if current interest rates are 6.4% per annum, compounded annually.

    Right now, I'm using
    R=10000
    n=10
    i=0.064

    The answer at the back is supposedly $28 279.68.

    Please show me what I'm suppose to do.
    Thanks!!!
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  2. #2
    Junior Member Nerdfighter's Avatar
    Joined
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    Washington
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    could you post the formulas you've been given to work with?
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