Question: Payout 1 doesnt need to be solved since its still just $20,000 after 20 years, but supposed to use a timeline for all 3 payout
You just won the Chump Change Lottery, an d now you have a choice of payout plans. You may elect to receive a lump sum of $20,000 twenty years from today PAYOUT 2: You can take $7,500 today PAYOUT 3: You may choose to receive 10 annual payments of $1,250 with the first payment given to you six years from today. You have no immediate need for the money, so will put any and all cash flows that you receive into a special bank account which pays you 5% compounded annually. What would be the amount in your bank account at the end of 20 years for each of the three payout options
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