Answer:
$8,930,211.23
Explanation:
In order to find the actual worth of the prize, each $2 million payment must be "brought back" to their current value at a 6% per year rate. Since the first payment is made immediately:
[tex]W=\frac{2,000,000}{(1.06)^0} +\frac{2,000,000}{(1.06)^1}+\frac{2,000,000}{(1.06)^2}+\frac{2,000,000}{(1.06)^3} +\frac{2,000,000}{(1.06)^4}\\W=\$8,930,211.23[/tex]
The grand prize is really worth $8,930,211.23.
