Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You just won the $89 million California State. The lottery offers you a choice of receiving a lump sum today or $89 million split into
You just won the $89 million California State. The lottery offers you a choice of receiving a lump sum today or $89 million split into 26 equal annual installments at the end of each year (with the first amount paid a year from now). Assume the funds can be invested at an annual rate of 7.65%. What dollar amount of the lump sum would exactly equal to the present value of the annual installments? Round off to the nearest $1: Group of answer choices A)$89,000,000 B)$38,163,612 C)$41,083,128 D)$13,092,576
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started