# Statisics

posted by .

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?

## Similar Questions

1. ### Math

A lottery has a grand prize of \$180,000, two runner-up prizes of \$22,500 each, eleven third-place prizes of \$3600 each, and fourteen consolation prizes of \$450 each. If 720,000 tickets are sold for \$1 each and the probability of any …
2. ### statistic

A lottery ticket has a grand prize of \$28 million. The probability of winning the grand prize is .000000023. Based on the expected value of the lottery ticket, would you pay \$1 for a ticket?
3. ### Statistics

A lottery ticket has a grand prize of \$28 million. The probability of winning the grand prize is .000000023. Based on the expected value of the lottery ticket, would you pay \$1 for a ticket?
4. ### math

Suppose a state lottery prize of \$2 million is to be paid in 20 payments of \$100,000 each at the end of each of the next 20 years. If money is worth 9%, compounded annually, what is the present value of the prize?
5. ### MBA Finance

Sally has won the grand prize in a lottery and must choose between the following three options: A. Receive a lump sum payment of \$10,000,000 B. Receive annual end of year payments \$2,000,000 for the next 8 years: C. Receive annual …
6. ### Statistics

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 …
7. ### Statisics

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 …
8. ### Finance

Suppose the chances of winning the lottery are 1 in 14 million with the earnings of \$20 million to the lucky winner. A ticket costs \$1. However, the winnings are paid over 20 years, with the first \$1 million payment occurring immediately. …
9. ### mathematics

the theoretical probability of winning the lottery is 1/1,000,000,000.which of the ff is true if you purchase a lottery ticket?
10. ### Math

HELP A Certain state's lottery LOTTO, is set up so that each player pays \$1 per ticket and chooses six different numbers from 1 to 49. if the six numbers chosen match the six numbers drawn each Saturday evening, the player wins the …

More Similar Questions