Question: Lucky Larry wins $ 4 , 0 0 0 , 0 0 0 in a state lottery. The standard way in which the state pays

Lucky Larry wins $4,000,000 in a state lottery. The standard way in which the state pays such lottery winnings is at a constant rate of $160,000 per year for 25 years. Round your answer to the nearest $10.
If Lucky invests each payment from the state at 5% compounded continuously, what is the accumulated future value of the income stream?
$
What is the accumulated present value of the income stream at 5%, compounded continuously? (This amount represents what the state could pay as a "lump sum" payment )

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!