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Last Friday mega millions prize was estimated to be 145 million. Report lottery prizes are just the sum total of the future annual payment. In
Last Friday mega millions prize was estimated to be 145 million. Report lottery prizes are just the sum total of the future annual payment. In this case. 26 beginners of th year annuity payments that will be paid to the prize Winner. For the current prize:annual payment =145 million/26. Of course,this145 million annuity ignores the time value of money. The winner can elect the cash option of98 million today instead of 26 year annuity. Whats the difference between today pv of the cash option and annuity payout atw3.5% compound annually A -47millikn B -3.803 C-4.321 D0.506 E3.803
Last Friday mega millions prize was estimated to be 145 million. Report lottery prizes are just the sum total of the future annual payment. In this case. 26 beginners of th year annuity payments that will be paid to the prize Winner. For the current prize:annual payment =145 million/26. Of course,this145 million annuity ignores the time value of money.
The winner can elect the cash option of98 million today instead of 26 year annuity. Whats the difference between today pv of the cash option and annuity payout atw3.5% compound annually
A -47millikn
B -3.803
C-4.321
D0.506
E3.803
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