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Business, 15.02.2021 23:00 Ezasha

The Jan. 22 Mega Millions jackpot amount was $1.05 billion ($1050 million) which is the undiscounted sum of the 30 annuity option payments or the winner(s) could select the Cash Option of $776.6 million. The first payment under the Annuity Option which would occur immediately is $15,804,007 with 29 additional annual payments with each payment being 5% larger than the previous one. Using this information and assuming you demand a 2.8% annual return, would you prefer the Annuity Option or the Cash Option if you have the winning ticket

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