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If the discount rate is 8.25% then the present value of my winning a lottery is $5,204,600.
What is lottery?
A game in which tickets with numbers are sold to participants, who then have the chance of winning a prize if their number is chosen. This game is frequently arranged by the government or a charity in order to raise money.
With a set of numbers, the lottery game is played in finance. Either manually or automatically, the numbers are selected at random. The picked numbers are intended to win prizes. The prize money may be awarded to the winner as a flat sum or in instalments. In general, prize winners prefer receiving a lump sum of money.
Although there is debate about whether lotteries actually increase public spending, they do allow governments to earn money without raising taxes.
To learn more on lottery from the link:
https://brainly.com/question/9216200
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