You just won the Florida lottery. To receive your winnings, you must select ONE of the two
following choices:
1. You can receive $2,000,000 a year at the end of each of the next 30 years.
2. You can receive a one-time payment of $16,000,000 today.
Assume that the current interest rate is 7%. Which option is most valuable?

Answer rating: 100% (QA)

The annuity option receiving 2000000 a year for 30 years is the more valuable option even considerin... View the full answer