you hit the lottery for 1 million dollars. the state has given you a couple of payment options.

a) they offer annual payments of 50,000 for 20 years. how much could you sell (discount) this for to a structured settlement company like J.G. Wentworth that will give you 8% APR?

b) what if wentworth gives you 6%?

c) if the state offers a lump sum distribution of 500,000, which option will you choose?