Reference no: EM13801713
In 2004, a Massachusetts woman won 5.6 million dollars in the lottery, which would have paid her an initial gross payment of $283,770 and 19 more yearly payments of $280,000. Instead she sued the lottery commission for a lump-sum payment. Louise Outing is 94 years old, and she knew it would be foolish to expect to live another 20. So the lottery winner wants all of her cash now, not in payments spread out over the next two decades.
''In March, I will be 95 years old. Do you realize that? Ninety-five in March," the Everett woman said in a telephone interview yesterday. ''Now, you know I'm not going to live 20 years. "Outing won the Sept. 4 Megabucks drawing, and she wants the Massachusetts State Lottery Commission to cut her a check immediately for the full $5.6 million, minus taxes. But the commission has so far rejected that request, saying Megabucks winners get 20-year annuities, not lump-sum payments.
Assume an interest rate of 10%. Ticket sales were 4 million dollars.
a. How much money the lottery commission will end up in their bank immediately after they pay the last payment of $280,000 to Ms. Outing.
b. If the commission decide to pay Ms. Outing a lump sum, how much will that be? (Hint: initial payment plus the present value of the 19 payments).
|
National sales tax to replace our personal income tax
: A candidate in the group is proposing a national sales tax to replace our personal income tax. Analyze this tax proposal to help your candidate understand its merits and demerits, so that she knows how to attack him.
|
|
What are the strengths and weaknesses of the tax
: Assume that your favourite candidate is proposing a 15 percent flat tax to replace our personal income tax. Analyze the tax and tell whether it is a good tax alternative or not. What are the strengths and weaknesses of the tax?
|
|
Calculate the present worth
: You are in the process of deciding to buy a car. You found a brand new Hyundai Elantra for $22,000. You read the reviews and they all sound good. You plan to keep it for 5 years. You do some rough calculations on the amount of expenses which includes..
|
|
What is the total debt of the government at the end of year
: A government starts off with a total debt of $3.5 billion. In year one, the government runs a deficit of $400 million. In year two, the government runs a deficit of $1 billion. In year three, the government runs a surplus of $200 million. What is the..
|
|
How much money the lottery commission will end up
: In 2004, a Massachusetts woman won 5.6 million dollars in the lottery, which would have paid her an initial gross payment of $283,770 and 19 more yearly payments of $280,000. Instead she sued the lottery commission for a lump-sum payment. How much mo..
|
|
Budget is the plan for obtaining and expending revenue
: The annual federal budget is the plan for obtaining and expending revenue of the federal government. In a minimum of two paragraphs, describe the source(s) of government revenue and the types of expenditures in the typical federal budget.
|
|
Political parties-their roles and functions within system
: Major factors in the system of American government are the political parties and their roles and functions within the system. In a minimum of three well-written paragraphs, discuss the roles and functions/purpose of the political parties as they curr..
|
|
Describe the constitutional issue
: You have studied the judicial branch of government, with emphasis on the Supreme Court, and the rulings they have made which have had wide-ranging effects on everyone in America. Describe the background of each of the two cases – the reason a case wa..
|
|
Executive branch of government and the wide range of power
: You have studied the executive branch of government and the wide range of power, as well as the various roles of the head of that branch, the president. Consider the presidency of Barack Obama.
|