A $1,000,000 state lottery prize is spread evenly over 10 years ($100,000 a year), or you may take a lump distribution of $654,000 If you can earn 7 percent, which alternative is better ...

Determine the present value of the annuity ...

A $1,000,000 state lottery prize is spread evenly over 10 years ($100,000 a year), or you may

Question:

A $1,000,000 state lottery prize is spread evenly over 10 years ($100,000 a year), or you may take a lump of $654,000. If you can earn 7 percent, which alternative is better?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...