Assume you won the lottery for $7M. You have the following two choices in how you want to receive your prize:
1. $350,000 each year for the next 20 years, with the first check received today
2. One lump sum of $4M in cash today.
Which is the better option?© BrainMass Inc. brainmass.com October 2, 2020, 4:43 am ad1c9bdddf
Your tutorial is attached and explains how the rate changes the decision.