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X .00 2.0 .00 Delete Themes Aas A Home Layout Tables Charts SmartArt Formulas Data Review Edit Font Alignment Number Format Cells Themes Fill Arial
X .00 2.0 .00 Delete Themes Aas A Home Layout Tables Charts SmartArt Formulas Data Review Edit Font Alignment Number Format Cells Themes Fill Arial - 11 - A A- A abc Wrap Text General Normal - Clear U A "aste Merge - SS - % % , Conditional Bad Formatting Insert Aa Format A1 X fx 5. Suppose you were the sole winner of the Power Ball Lottery and the corresponding $ 150 million jackpot. You may either receive either a lump sum payment now, or a B C D E F G H LM N 5. Suppose you were the sole winner of the Power Ball Lottery and the corresponding $150 million jackpot. You may either receive either a lump sum payment now, or a series of thirty $5 million payments per year, beginning immediately for 30 PVOperjods. If the current 30-year interest rate is 4%, compounded annually, what should the lump sum payment be today to make you indifferent between receiving a lump sum payout or receiving the $5 million per year 30-year annuity set of payments? What do you call this type annuity? Annual Annuity Payment Annuity Life - Years Annual Interest Rate Compounding periods (per year) $5,000,000 30 4.00% 1 Lump Sum Payment or Present Value (PV) - ANSWER TYPE of Annuity - ANSWER Annuity Due
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