State offers three different payout plans

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Reference no: EM13950117

You just got a call from your uncle indicating he just won $40,000 in the New York Take Five. He needs some financial advice. The state offers three different payout plans: a: He can receive $40,000 today, b: He can receive $100 per week for 10 years, c: He can receive monthly payments of $500 for 8 years. What is the better deal for him if he can invest funds nominally at an annual rate of 5.1%? Nominally means you can apply compounding appropriately to the application. Explain.

Please solve it on fiancé calculator or on excel

Reference no: EM13950117

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