Answer:
$34,822.03
Step-by-step explanation:
Future value after 30 years (FV) = $200,000
Time (t) = 30 years
interest rate (r) = 6% =0.06
The equation for obtaining the present value given the future value is:
[tex]PV = \frac{FV}{(1+r)^n}[/tex]
Applying the data provided:
[tex]PV = \frac{\$200,000}{(1+0.06)^{30}}\\PV=\$34,822.03[/tex]
The present value of the lottery prize amount is $34,822.03.
