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Congratulations you have just won a $1 million lottery. The payouts are spread evenly over twenty years beginning today. But wait dont forget about taxes.
Congratulations you have just won a $1 million lottery. The payouts are spread evenly over twenty years beginning today. But wait dont forget about taxes. Assume a combined state and federal flat tax rate of 28 percent of each payment is withheld when paid. Now, with the coronavirus pandemic you decide that you cant wait for twenty years and someone offers you $500,000 for your lottery winnings. Do you accept the offer? Assume an annual interest rate of 3 percent.
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