You just won the lottery! You have a choice now of $5,000,000 now (cash value), or $425,000 a year for 30 years. You are a pretty aggressive investor and feel confident that you can get a 9% yearly return on your investments in the stock market. From a purely financial standpoint, which do you choose?© BrainMass Inc. brainmass.com June 3, 2020, 7:14 pm ad1c9bdddf
Calculate the present value of the annuity of $425,000 for 30 ...
The solution discusses the lottery and different ways in which to receive the jackpot.