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please help answer them all and ill rate good thank you 1. In September 2015, a woman on the East Coast won a $537 million
please help answer them all and ill rate good thank you
1. In September 2015, a woman on the East Coast won a $537 million dollar Mega-Million jackpot. Instead of 30 annual payments she opted to receive approximately $347 million-dollar lump sum. a. Approximate the interest rate that the Mega-Million company is paying on the annuity by treating $537 million as the ending amount after 30 years, $347 million as the present value, and assume continuously compounded interest. Your answer should be a percentage with two decimal places. b. Approximate the interest rate that the Mega-Million company is paying on the annuity by treating the $537 million as the ending amount after 30 years where the interest is compounded annually and the present value is $347 million. Your answer should be a percentage with 2 decimal places. (Note: These calculations are rough estimates because with an annuity some of the principle is paid out annually - which requires a more complicated formula - see chapter 5 if you are interested) c. If the Mega-Million keeps the $347 million dollars, they tack on 5.5% annually to adjust for the increase in the cost of living. How much does the $347 million grow to after 30 years compounded annually with a 5.5% interest rate? d. Read the article titled "If you win the Powerball lottery, don't take the payment in a lump sum," which I posted in Canvas Week 2 module. I am not sure if the lump sum taxes are pre-tax amounts. Tell me whether you would take a lump sum or an annuity if you won the lottery, and why Step by Step Solution
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