Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Winners of the Dream a Dream Lotto draw are given the choice of receiving the winning amount divided equally over 21 years or as a
Winners of the Dream a Dream Lotto draw are given the choice of receiving the winning amount divided equally over 21 years or as a lump sum cash option amount. The cash option amount is determined by discounting the winning amount at 5 percent interest compounded quarterly over 21 years. This week the lottery is worth $9 million to a single winner. What would the lump-sum cash option payout be?(Use the time value of money formulas or the TI BAIl Plus financial calculator, and enter your answer rounded to the nearest cent.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started