Bill has won a $1,000,000 lottery prize. The lottery has offered Bill a few options in how
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Question:
Bill has won a $1,000,000 lottery prize. The lottery has offered Bill a few options in how he can receive his prize.
1.Receivethe $1,000,000today.
OR
2.An annuity of $23,900paid Quarterly for 13 years.
While option #1 this sound nice, Bill has not had a good relationship with money in the past and he is torn between the twooptions. So to break the tie he wants to know which option will have the highest future value after 13 years.
Assume a rate of 5.6% compounded Bi-Weekly for all the following questions.
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