Question: Powerball lottery Winners of lotteries receive the jackpot distributed over a period of years, usually 20 or 25 years. The winners of the Powerball lottery on July 29, 1998, elected to take a one-time cash payout rather than receive the $295.7 million jackpot in 25 annual payments beginning on the date the lottery was won.
(a) How much money would the winners have received at the beginning of each of the 25 years?
(b) If the value of money was 5.91%, compounded annually, what one-time payout did they receive in lieu of the annual payments?