Multiple Choice
You just won a lottery - CONGRATULATIONS! Your parents have always told you to plan for the future, so since you already have a well-paying job you decide to invest rather than spend your lottery winnings. The payment schedule from the lottery commission is $100,000 after taxes at end of year one and 19 more payments of exactly $100,000 after taxes in equal annual end-of-the-year deposits (i.e., the first of the next 19 deposits is one year from today) into your account paying 7% compounded annually. How much money will be in your account after the last deposit is made?
A) $2,000,000.00
B) $3,637,896.48
C) $4,099,549.23
D) $4,486,517.68
Correct Answer:
Verified
Correct Answer:
Verified
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