Solved: If the applicable discount rate is 378 per year how large, Business Management

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If the applicable discount rate is 378 per year how large

The Powerball lottery jackpot reached $1.6 billion two year ago. Assume the jackpot was to be paid in 25 annual installments of $64,000,000.00 per year (starting in year 1). An alternative to the installment plan was to receive a lump sum payment today. If the applicable discount rate is 3.78% per year, how large would the lump sum payment option be?

a. $ 1,023,473,787.05

b. $ 1,143,548,754.15

c. $ 1,269,953,279.10

d. $ 1,311,806,526.90

e. $ 1,381,187,139.64

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Business Management: If the applicable discount rate is 378 per year how large

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Business Management: If the applicable discount rate is 378 per year how large

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