### Example: Present Value of an Investment

A lady wins a $10 million lottery. The money is to be paid out at the end of each year in $500,000 payments for 20 years. The current treasury bill rate of 6% is used as the discount rate. Here, the present value of her prize is computed.
import com.imsl.finance.*;
import java.text.NumberFormat;
public class pvEx1 {
public static void main(String args[]) {
double rate = 0.06;
double pmt = 500000.;
double fv = 0.;
int nper = 20;
int when = Finance.AT_END_OF_PERIOD;
double pv = Finance.pv(rate, nper, pmt, fv, when);
System.out.println("The present value of the $10 million prize is "
+ NumberFormat.getCurrencyInstance().format(pv));
}
}

#### Output

The present value of the $10 million prize is ($5,734,960.61)

Link to Java source.