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please show your work :) The Powerball jackpot is currently estimated to be $610 million with a cash value of $292.6 million. On the Powerball
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The Powerball jackpot is currently estimated to be $610 million with a cash value of $292.6 million. On the Powerball website, the payment options are described as - an annuity with "30 graduated payments over 29 years" where the "annual payments increase by 5% until the 30 th and final payment," or - "a lump-sum payment." The annuity payments are determined so that numerical values of "the 30 payments added up equal the value of the annuity," i.e., the estimated jackpot is simply the sum of all payments without considering the time value of money, and it is not its future value at t=30. IThe website also states that "the cash value option, in general, is the amount of money required... to fund the estimated jackpot annuity," i.e., the cash value is the present value of the annuity. The annual effective interest rate i used in the calculation of the value of the annuity option (using the standard notation from class) is decided after ticket sales are final after meetings with potential lenders, but the interest rate is estimated in advance to give an approximate jackpot. Find i for the current estimated Powerball jackpot options. You may want to use software (WolframAlpha will do) to find roots to any high-degree polynomials; make sure to note in your solution where any computations were done that can't be completed using a basic scientific calculator. The Powerball jackpot is currently estimated to be $610 million with a cash value of $292.6 million. On the Powerball website, the payment options are described as - an annuity with "30 graduated payments over 29 years" where the "annual payments increase by 5% until the 30 th and final payment," or - "a lump-sum payment." The annuity payments are determined so that numerical values of "the 30 payments added up equal the value of the annuity," i.e., the estimated jackpot is simply the sum of all payments without considering the time value of money, and it is not its future value at t=30. IThe website also states that "the cash value option, in general, is the amount of money required... to fund the estimated jackpot annuity," i.e., the cash value is the present value of the annuity. The annual effective interest rate i used in the calculation of the value of the annuity option (using the standard notation from class) is decided after ticket sales are final after meetings with potential lenders, but the interest rate is estimated in advance to give an approximate jackpot. Find i for the current estimated Powerball jackpot options. You may want to use software (WolframAlpha will do) to find roots to any high-degree polynomials; make sure to note in your solution where any computations were done that can't be completed using a basic scientific calculatorStep by Step Solution
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