*************** A lottery offers a $1,000,000 prize to be paid in 20 equal Installments of $50,000 at the end of each year. What is the future value of this annuity If the current annual rate is 3% ? (Round your answer to the nearest cent.) Ex

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The image contains a photograph of a Kansas Lottery check-a-ticket machine with a hand holding a ticket up to the machine.

To the right of the image, the following text appears:

"A lottery offers a $1,000,000 prize to be paid in 20 equal installments of $50,000 at the end of each year. What is the future value of this annuity if the current annual rate is 3%? (Round your answer to the nearest cent.)"

This educational problem involves calculating the future value of an annuity, considering annual payments, the total period, and the interest rate.
Transcribed Image Text:The image contains a photograph of a Kansas Lottery check-a-ticket machine with a hand holding a ticket up to the machine. To the right of the image, the following text appears: "A lottery offers a $1,000,000 prize to be paid in 20 equal installments of $50,000 at the end of each year. What is the future value of this annuity if the current annual rate is 3%? (Round your answer to the nearest cent.)" This educational problem involves calculating the future value of an annuity, considering annual payments, the total period, and the interest rate.
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