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

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

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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 39 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
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