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Gabrielle just won $2.4 million in the state lottery. She is given the option of receiving a of $900,000 now, or she can elect to
Gabrielle just won $2.4 million in the state lottery. She is given the option of receiving a of $900,000 now, or she can elect to receive $80,000 at the end of each of the next 30 years. If Gabrielle can earn 8% annually on her investments, which option should she take? If Gabrielle takes the prize as an annuity, the present value of the 30 -year ordinary annuity is $. (Round to the nearest dollar.) If Gabrielle takes the prize as a single amount, the present value of the lump sum is $. (Round to the nearest dollar.)
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