Prizes are often not "worth" as much as claimed. place a value on a prize of $5,000,000 that is to be received in equal annual payments over the next 20 years, with the first payment beginning today. assume an interest rate of 7 percent over the 20-year period. a) $2,212,652b) $2,648,504c) $2,833,899d) $2,950,567a

C) $2,833,899

Explanation:

This is an "annuity due " type of question, it is asking for  the Present value (PV) or present worth of an annually recurring equal payment; PMT.

First, divide 5,000,000 by 20 to get equal payment = 250,000

Using a financial calculator on "BGN" mode, input the following;

N= 20

I/Y = 7%

PMT = 250,000

FV = 0

then compute present value; CPT PV = 2,833,898.81

Therefore, it will be worth $2,833,899

idk sorry

explanation: