Jos won $4,000,000 from the Puerto Rico lotto and will receive a check for $ 200,000 now and a similar check every year for 19 years. To guarantee these payments, the electronic Lottery purchased an anticipated annuity at an interest rate of 10% compounded monthly. How much did the annuity cost the electronic Lottery?

Answer rating: 100% (QA)

The cost of the annuity the electronic lottery purchased is the present value of all the payments Jos will receive There are two parts to consider The ... View the full answer