Suppose you were the sole winner of the Power Ball Lottery and the corresponding $250 million jackpot. You may either receive either a lump sum payment now, or a series of twenty-five $10 million payments per year, beginning immediately for 25 periods. If the current 25-year interest rate is 3.5%, compounded annually, what should the lump sum payment be today to make you indifferent between receiving a lump sum payout or receiving the $10 million per year 25-year annuity set of payments? What do you call this type of annuity? Annual Annuity Payment Annuity Life - Years Annual Interest Rate $10,000,000 25 3.50% Lump Sum Payment or Present Value (PV) - ANSWER TYPE of Annuity