Who wants to be millionaire

Assignment Help Business Management

Reference no: EM132342054

Assignment Details

Who Wants to Be a Millionaire?

You just won $1 million dollars in the lottery! They offer you two options for your winnings: a lump sum payment right now, or $100,000 a year over the next 10 years. Current 10-year interest rates are at 5%, and the current tax on lottery winnings is 40%.

What is the amount you will receive today with the lump sum option?

Which option would you select? How would you present your argument for your decision in a debate?

Sorry, you didn't win the lottery, but here's a way you can still be a millionaire! Starting at age 22, every night you take $5 out of your pocket and put it in a manila envelope (title it "Lottery Winnings"). At the end of the year, you place the money from the envelope in a stock fund with an average interest rate of 10%.

How much will you have in the account when you retire at age 65?

What would be different if you started this plan later in your life?

Your submitted assignment must include the following:

Submit a double-spaced Word document of 1-2 pages that contains your answers to the four questions listed in the assignment description, any calculations you performed, and all formulae that were used. Also, in the Word document, insert an Excel spreadsheet that shows how you arrived at your answers, or screenshot of the online calculator utilized with your answers shown.

The use of 3 scholarly sources (e.g., textbook, article from the CEC Library) is required.

Deliverable Length: 1 - 2 page Word Document, with embedded Excel spreadsheet or screenshot

Reference no: EM132342054

Questions Cloud

What companies they should give business : Who gains and who loses when an economy opens for trade; and how?

What happens to the supply and demand : If the price level of goods and services in the US decreases relative to foreign countries, what happens to the supply and demand?

How will affect supply and demand : If the interest rates are higher than foreign countries, how will affect supply and demand?

Earned value management evm contract management activities : In which document can the project manager PM find guidance for implementing Earned Value Management EVM contract management activities?

Who wants to be millionaire : Who Wants to Be a Millionaire? What is the amount you will receive today with lump sum option? How would you present your argument for your decision in debate?

Federal reserve of the united states lowers interest rates : If the federal reserve of the United States lowers interest rates which are now lower than foreign countries, what would happen to the supply and demand?

Interest rates which are now lower than foreign countries : If the federal reserve of the United States lowers interest rates which are now lower than foreign countries, what would happen to the supply and demand?

Defining features of perfect competition : Defining features of perfect competition. Have you ever purchased a good or service in a market that met the requirements for perfect competition?

Contrasts the leadership styles and scope of influence : Contrasts the leadership styles and scope of influence of 2 historical figures. Describe how each influence the lives of others positively and/or negatively

User Account

All Pages