Lottery payments per year

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Reference no: EM1361836

The lottery is $60,000,000 and the state offers to pay you $3,000,000 per year for the next 20 years, or you can take the lump sum today of $29,500,000. If you choose to take the $3,000,000 per year for 20years, the state will invest that $29,500,000 today so that it can give you those payments per year for 20 years. What rate will the $29,500,000 be invested at today to insure that the $3,000,000 will be available to pay you every year for the next 20 years?

Reference no: EM1361836

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