Question
You just won a lottery--CONGRATULATIONS! Your parents have always told you to plan for the future, so since you already have a well paying job
You just won a lottery--CONGRATULATIONS! Your parents have always told you to plan for the future, so since you already have a well paying job you decide to invest rather than spend your lottery winnings. The payment schedule from the lottery commission is $100,000 after taxes at the end of year one and 19 more payments of exactly $100,000 after taxes in equal annual end of the year deposits (i.e., 20 deposits of $100,000 each, the first deposit is one year from today) into your account paying 8.5% compounded annually. How much money will be in your account after the last deposit is made?
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