Mathematics, 27.07.2019 04:20 CelesteN64
How much is the lottery really worth? you have to be careful about money. lottery winners sometimes think they are millionaires when in fact they are not as rich as they think. suppose a state runs a lottery in which the grand prize is $1 million dollars. what that means is that the winner is paid $1 million dollars continuously over the next 20 years. assuming that banks pay interest of 10% on borrowed money over the next 20 years, how much is the lottery worth in today's dollars? hint: letting t denote time in years, first solve s' = 0.10s - 50,000, s(0) = so, and then set s(20) 0 and solve for so
Answers: 2
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