I won a jackpot that will pay me 12,000 over the next 10 years. If the interest rates are currently at .12%?

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I won a jackpot that will pay me 12,000 over the next 10 years. If the interest rates are currently at .12%?

how much would the lottery have to invest today to pay out this prize over the next 10 years?

2007-07-20 15:40:38 · 2 answers · asked by nora 4 in Business & Finance ➔ Personal Finance

2 answers

If the first payment of $12,000 occurs at the beginning of the year, they would have to pay $83,252. If their first payment to you comes at the end of the year, their amount will be $74,332.

2007-07-20 16:45:41 · answer #1 · answered by Patrick M 2 · 0⤊ 0⤋

About $76,000. But of course you know that's a higher interest rate than would be safely available.

2007-07-20 16:15:32 · answer #2 · answered by Judy 7 · 0⤊ 0⤋