Question
Present Value.Winners of the Georgia Lotto drawing are given the choice of receiving the winning amount divided equally over 19 years or as a lump-sum
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Present Value.Winners of the Georgia Lotto drawing are given the choice of receiving the winning amount divided equally over 19 years or as a lump-sum cash option amount. The cash option amount is determined by discounting the annual winning payment at 8% over 19 years. This week the lottery is worth $2million to a single winner. What would the cash option payout be?
The cash option payout would be ? (Round to the nearest cent.) (Use your financial calculator or you may use the Financial Tables in Appendix C in computing your answer, and round to the nearest cent.)
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