How much could sell for to a structured settlement

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You hit the lottery for $1 million dollars. The state has given you a couple of payment options.

Question a. They offer annual payments of $50,000 for 20 years. How much could you sell (discount) this for to a structured settlement company like J.G. Wentworth that will give you 8% APR?

Question b. What if Wentworth gives you 6% APR?

Question c. If the state offers a lump sum distribution of $500,000, which option will you choose?

Reference no: EM132659473

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