1. Suppose you win the lottery, a 60 million dollar jackpot. The state will either give you $250000 each month for 20 years, or you can receive a lump sum of 20 million dollars upfront.

With the first option, you collect 20 million dollars upfront. If you invest this amount in a bank account which makes 3.6% compounded monthly, how much money would be in the account after 20 years?
Total saved after taking the lump sum:

Question

1. Suppose you win the lottery, a 60 million dollar jackpot. The state will either give you $250000 each month for 20 years, or you can receive a lump sum of 20 million dollars upfront.

With the first option, you collect 20 million dollars upfront. If you invest this amount in a bank account which makes 3.6% compounded monthly, how much money would be in the account after 20 years?
Total saved after taking the lump sum:

anonymous · Answer

2. With the second option, you would receive $250000 each month for 20 years. Suppose you were to open a bank account making 3.6% compounded monthly, and you deposit $250000 each month for 20 years. How much money would be in the account after 20 years?
Total saved by taking monthly amounts: