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?

Equation will follow.

Question

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?

Equation will follow.

anonymous · Answer

Total saved after taking the lump sum?:

Second Part
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: 

I believe the equation to this problem is...
A=P(1+r/n)^(n)(t)