Question
David won a lottery worth $10,000,000. He has opted for an annuity payment at the end of each year for the next 20 years as
David won a lottery worth $10,000,000. He has opted for an annuity payment at the end of each year for the next 20 years as a payout option.
a. Determine the amount that David will be paid as annuity payment if the ongoing rate of interest in the market is 5%. b. What is the Lumpsum if David decides to withdraw everything at the end of 20 years.
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Understanding Financial Risk Management
Authors: Angelo Corelli
1st Edition
0415746183, 978-0415746182
