The Grand Prize in a State Lottery is $500000

jagguarpaw January 10, 2017 0 Comments

Question: The Grand Prize in a State Lottery is $500000, which

 

The Grand Prize in a State Lottery is $500000, which will be paid in 20 equal annual payments of $25000 each. The State makes the first payment right away. How much does the State need to deposit in an account paying 6% compounded annually to be able to make the remaining 19 equal payments of $25000 each?