Current Jackpot is 30 million

If you are a Mega Millions jackpot winner, you will have the choice of a Cash Option or an Annual Payout. Annuity option: Provides for an initial annual payment followed by 29 annual payments. Each payment is 5 percent larger than the previous one. (geometric gradient) Cash option: A one-time, lump-sum payment that is equal to all the cash in the Mega Millions jackpot prize pool. (a) Which payout option would you choose assuming you put a portion of your winnings into a retirement account that gains guarantees at least 5%? How would keep aside to accommodate your lifestyle? Compare the economic equivalence for all options. Assume mega millions of current jackpot to date. Assume average inflation of 3.00% per year over the course of your life. Assume current NJ Income Taxes Laws for the Tax rates for all income. Assume current Federal Taxes Laws for the Tax rates for all income. If you are a Mega Millions jackpot winner, you will have the choice of a Cash Option or an Annual Payout. Annuity option: Provides for an initial annual payment followed by 29 annual payments. Each payment is 5 percent larger than the previous one. (geometric gradient) Cash option: A one-time, lump-sum payment that is equal to all the cash in the Mega Millions jackpot prize pool. (a) Which payout option would you choose assuming you put a portion of your winnings into a retirement account that gains guarantees at least 5%? How would keep aside to accommodate your lifestyle? Compare the economic equivalence for all options. Assume mega millions of current jackpot to date. Assume average inflation of 3.00% per year over the course of your life. Assume current NJ Income Taxes Laws for the Tax rates for all income. Assume current Federal Taxes Laws for the Tax rates for all income