In: Statistics and Probability
Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume the lottery can invest at the given interest rates.
Jackpot amount | interest rate | equal annual payments | present value in dollars |
$16,000,000 | 8% | 20 | $ |
$16,000,000 | 13% | 20 | $ |
$16,000,000 | 8% | 25 | $ |
$16,000,000 | 13% | 25 | $ |
(round to nearest dollar amount)