Posted by **Val** on Thursday, July 19, 2012 at 12:57am.

The state lottery claims that its grand prize is $1 million. The lucky winner will receive $50,000 upon presentation of the winning ticket plus $50,000 at the end of each year for the next 19 years. Why isn't this really a million-dollar prize? What would it actually be worth in dollars to you? What would the twenty yearly payments need to be for the present value of the lottery to be $1 million?

## Answer this Question

## Related Questions

- Statisics - The state lottery claims that its grand prize is $1 million. The ...
- Statistics - The state lottery claims that its grand prize is $1 million. The ...
- Math - HELP A Certain state's lottery LOTTO, is set up so that each player pays...
- Statistics - A lottery ticket has a grand prize of $28 million. The probability ...
- statistic - A lottery ticket has a grand prize of $28 million. The probability ...
- MBA Finance - Sally has won the grand prize in a lottery and must choose between...
- Math - A lottery has a grand prize of $180,000, two runner-up prizes of $22,500 ...
- Finance - Suppose the chances of winning the lottery are 1 in 14 million with ...
- mathematics - the theoretical probability of winning the lottery is 1/1,000,000,...
- math - Suppose a state lottery prize of $2 million is to be paid in 20 payments ...

More Related Questions