Question: Marcus has won a $3,000,000 state lottery. He can take his prize as either 15 yearly payments of $200,000 or a lump sum of $1,520,000.
Marcus has won a
$3,000,000
state lottery. He can take his prize as either
15
yearly payments of
$200,000
or a lump sum of
$1,520,000.
Which is the better option? Assume an interest rate of
10%.
(In the case of annual payments, assume that the 1st one will be one year from now.)
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
