Youn with a $4,000,000 in the Mega Millions lottery. When you go to collect you winnings,...

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Youn with a $4,000,000 in the Mega Millions lottery. When you go to collect you winnings, you find out that you will be paid in 40 annual payments in the amount of $100,000 which totals out to be $4,000,000. Since the payments to you will be at the end of each year, how much does the Lottery department need to have in a special account that earns 4% compounded annually so that you will receive the entire winning amount? $ How much interest is the lottery department making so that they don't actually need $4,000,000? $ Youn with a $4,000,000 in the Mega Millions lottery. When you go to collect you winnings, you find out that you will be paid in 40 annual payments in the amount of $100,000 which totals out to be $4,000,000. Since the payments to you will be at the end of each year, how much does the Lottery department need to have in a special account that earns 4% compounded annually so that you will receive the entire winning amount? $ How much interest is the lottery department making so that they don't actually need $4,000,000? $

Answer rating: 100% (QA)

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