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A woman scratched her way to a $1 million prize on the Ohio Lottery's $5 Million...

A woman scratched her way to a $1 million prize on the Ohio Lottery's $5 Million jackpot instant game ticket. Kimberly L. Matey will get $50,000 for 20 years for a total of $1 million with the first payment paid immediately and 19 more payments paid in the following 19 years. Or she can get a lump sum payment. Suppose the Lottery Authority use 5% as discount rate to calculate the lump sum. What is the lump sum payment?

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Answer #1

Computation of Lumpsum payment: = $654266.04

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