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You have just won the initial school finance lottery! you have won $20,000 today, $20,000 five years from today, and $60,000 10 years from today.

You have just won the initial school finance lottery! you have won $20,000 today, $20,000 five years from today, and $60,000 10 years from today. As an alternative, you can receive your winnings as a 10-year annuity with the first payment received five years from today. 


If you require a 6% return on your investment, how much must the annuity pay you each year for you to select that option ?

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