Who Wants to Be a Millionaire?
You aloof won $1 actor dollars in the lottery! They action you two options for your winnings: a agglomeration sum acquittal appropriate now, or $100,000 a year over the abutting 10 years. Accepted 10-year absorption ante are at 5%, and the accepted tax on action accomplishment is 40%.
What is the bulk you will accept today with the agglomeration sum option?
Which advantage would you select? How would you present your altercation for your accommodation in a debate?
Sorry, you didn’t win the lottery, but here’s a way you can still be a millionaire! Starting at age 22, every night you booty $5 out of your abridged and put it in a manila envelope (title it “Lottery Winnings”). At the end of the year, you abode the money from the envelope in a banal armamentarium with an boilerplate absorption amount of 10%.
How abundant will you accept in the annual back you retire at age 65?
What would be altered if you started this plan after in your life?
Your submitted appointment charge accommodate the following:
Submit a double-spaced Word certificate of 1–2 pages that contains your answers to the four questions listed in the appointment description, any calculations you performed, and all formulae that were used. Also, in the Word document, admit an Excel spreadsheet that shows how you accustomed at your answers, or screenshot of the online calculator activated with your answers shown.
The use of 3 bookish sources (e.g., textbook, commodity from the CEC Library) is required.
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