Winners of the Dream a Dream Lotto draw are given the choice of receiving the winning amount divided equally over 22 years or as a lump sum cash option amount. The cash option amount is determined by discounting the winning amount at 9 percent interest compounded quarterly over 22 years. This week the lottery is worth $18 million to a single winner.

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 7E
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Winners of the Dream a Dream Lotto draw are given the choice of receiving the winning amount divided equally over 22 years or as a lump sum cash option amount.
The cash option amount is determined by discounting the winning amount at 9 percent interest compounded quarterly over 22 years. This week the lottery is worth $18
million to a single winner.
Transcribed Image Text:Winners of the Dream a Dream Lotto draw are given the choice of receiving the winning amount divided equally over 22 years or as a lump sum cash option amount. The cash option amount is determined by discounting the winning amount at 9 percent interest compounded quarterly over 22 years. This week the lottery is worth $18 million to a single winner.
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