Question
Winners of the Georgia Lotto drawing are given the choice of receiving the winning amount divided equally over 20 years or as a lump-sum cash
Winners of the Georgia Lotto drawing are given the choice of receiving the winning amount divided equally over
20
years or as a lump-sum cash option amount. The cash option amount is determined by discounting the annual winning payment at
5%
over
20
years. This week the lottery is worth
$20
million to a single winner. What would the cash option payout be?
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
6th Edition
125991965X, 978-1259919657
