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
The answer at the back is supposedly $28 279.68.
Please show me what I'm suppose to do.