Judy Bright has just won the lottery. She can elect to receive her winnings in equal payments of $200,000 a year for the next ten years on December 31 or to receive $2,000,000 immediately. If the current interest rate is 6%, which choice will provide the highest amount?

Multiple Choice

• Receiving $2,000,000 immediately.

• Taking equal payments for 10 years.

• It does not matter since either choice provides the same amount.

• Refusing to accept the winnings since it is not enough.