Until October 2002, the annuity due option for Powerball Jackpot winners was structured for 25 rather than 30 annual payments What annual payment in a 25 year annuity due would the October 19, 2005 Powerball cash prize ($227 8 million) purchase (Use the rate of return you calculated in Question 2 )...

Now we have PV due 227800000 n 2 ...

Until October 2002, the annuity due option for Powerball Jackpot winners was structured for 25 rather than

Question:

Until October 2002, the due option for Powerball Jackpot winners was structured for 25 rather than 30 annual payments. What annual payment in a 25-year due would the October 19, 2005 Powerball cash prize ($227.8 million) purchase? (Use the rate of return you calculated in Question 2.)
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...