Assume that you won the Powerball jackpot. You were given the choice between collecting $758.7 million over 30 years at the beginning of each year, or $480.5 million right away. The current maximum marginal tax rate is 37%. Assume your residence is in the State of Washington. What would be your choice and why?

Answer rating: 100% (QA)

To determine the better choice between collecting the Powerball jackpot over 30 years or taking a lump sum payment we need to consider the time value ... View the full answer