Juan is the lucky winner of the California state lottery. Lottery company gives him the following two options: (a) Annui

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Juan is the lucky winner of the California state lottery. Lottery company gives him the following two options: (a) Annui

Post by answerhappygod »

Juan Is The Lucky Winner Of The California State Lottery Lottery Company Gives Him The Following Two Options A Annui 1
Juan Is The Lucky Winner Of The California State Lottery Lottery Company Gives Him The Following Two Options A Annui 1 (35.88 KiB) Viewed 40 times
Juan is the lucky winner of the California state lottery. Lottery company gives him the following two options: (a) Annuity, 30 payments of $1 million per year (starting TODAY), or (b) Lumpsum, $15 million paid TODAY. He can save that money in a bank that pays 6.5% annual rate. How much is the benefit (in today's dollars) if Juan chose option (b)? Enter your answer in millions in the following format: 1.234 or -1.234 Hint: Answer is between -0.972 and -1.191
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”