QUESTION 4
A Powerball winner is offered two options:
1 lump sum payment of $135 million, or
30 annual payments of $8.5 million
If the average annual interest rate over the term of the payments is 3.5%, what is the Present Value of the annual payments? $
the nearest dollar.
What is the difference between the lump sum payment and the present value of the annual payments? $
nearest dollar. Represent as a positive number.
Round to the
What if the average annual interest rate over the term of the payments is 7%, what is the Present Value of the annual payments? $
Round to the nearest dollar.
What is the difference between the lump sum payment and the present value of the annual payments?

Round to the nearest dollar. Represent as a positive number.