Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 Milton Shirer has won the New York state lottery when the jackpot was $20 million. He has the options of taking the prize winnings as $2 million per year over the next ten years or a single payment now of $13,000,000. Which option should Milton choose based on present value principles and assuming an 8% annual interest rate compounded annually?

Question

Present Value of 1  Future Value of 1  Present Value of an Annuity of 1  Future Value of an Annuity of 1  Milton Shirer has won the New York state lottery when the jackpot was $20 million. He has the options of taking the prize winnings as $2 million per year over the next ten years or a single payment now of $13,000,000. Which option should Milton choose based on present value principles and assuming an 8% annual interest rate compounded annually?

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The Answer of Present Value of 1  Future Value of 1  Present Value of an Annuity of 1  Future Value of an Annuity of 1  Milton Shirer has won the New York state lottery when the jackpot was $20 million. He has the options of taking the prize winnings as $2 million per year over the next ten years or a single payment now of $13,000,000. Which option should Milton choose based on present value principles and assuming an 8% annual interest rate compounded annually?