The winner of a lottery is awarded $2,000,000 to be paid in annual installments of $100,000 for 20 years. Alternatively, the winner can accept a "cash value" one-time payment of $900,000. The winner estimates he can earn 8% annually on the winnings. What is the present value of the installment plan? (Round your answer to two decimal places.) $ Should he choose the one-time payment instead? O Yes, he should choose the one-time payment. O No, he should not choose the one-time payment

The winner of a lottery is awarded $2,000,000 to be paid in annual installments of $100,000 for 20 years. Alternatively, the winner can accept a "cash value" one-time payment of $900,000. The winner estimates he can earn 8% annually on the winnings. What is the present value of the installment plan? (Round your answer to two decimal places.) $ Should he choose the one-time payment instead? O Yes, he should choose the one-time payment. O No, he should not choose the one-time payment

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter2: Solving Linear Equations

Section2.2: Use A Problem Solving Strategy

Problem 2.53TI: Eduardo noticed that his new car loan papers stated that with a 7.5% simple interest rate, he would...

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