You just won a contest! you will receive $100,000 a year for 20 years, starting today. if you can earn 12 percent on your investments, what are your winnings worth today?

The formula that we will use is:

C * {{1 - [1 / (1 + r) t]}/r} + c

C = 100,0000

r =.12

t = 20

= 100000 * {{1 - [ 1 / (1 +.12) ^19]} /.12} + 100000

approximately 836,577.69

I am using a scientific calculator so just insert right the number and you will come up with the correct answer. The answer in this question is $836,577.69