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BB John has just learned he has won a $ 2 , 5 0 0 , 0 0 0 prize in the state lottery. He
BB John has just learned he has won a $ prize in the state lottery. He has two options for receiving the payments: If BB takes all the money today, the state and federal governments will deduct taxes at a combined rate of immediately. Alternatively, the lottery offers BB a payout of equal payments of $ with the first payment occurring when BB turns in the winning ticket. will be taxed on each of these payments at a rate of Assuming BB can earn a rate of return compounded annually on any money invested during this period, how much will he will earn if he goes with option Do not use dollar signs, commas, or decimals in your answers. Round to the nearest dollar.
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