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Jesse just won the state lottery. She has the choice of receiving a lump-sum payment of $312,950 or $50,000 per year for the next 20
Jesse just won the state lottery. She has the choice of receiving a lump-sum payment of $312,950 or $50,000 per year for the next 20 years. Jesse can invest the lump sum at 8% or the annual payments at 6%. Which should she choose (Calculate the PV of the payments and compare to lump sum)?
Lucy spends $50 a month on lottery tickets. How much would she have in 5 years if she chose to invest that amount monthly at 10% interest?
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