Lucky Larry wins $1,000,000 in a state lottery. The standard way in which the state pays such lottery winnings is at a constant rate of $50,000 per year for 20 years. Round your answer to the nearest $10. If Lucky invests each payment from the state at 8% compounded continuously, what is the accumulated future value of the income stream? What is the accumulated present value of the income stream at 8%, compounded continuously? (This amount represents what the state has to invest at the start of its lottery payments, assuming the 8% interest rate holds.) Submit Question

Lucky Larry wins $1,000,000 in a state lottery. The standard way in which the state pays such lottery winnings is at a constant rate of $50,000 per year for 20 years. Round your answer to the nearest $10. If Lucky invests each payment from the state at 8% compounded continuously, what is the accumulated future value of the income stream? What is the accumulated present value of the income stream at 8%, compounded continuously? (This amount represents what the state has to invest at the start of its lottery payments, assuming the 8% interest rate holds.) Submit Question

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter9: Sequences, Probability And Counting Theory

Section9.4: Series And Their Notations

Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...

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