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14 May 2018, 11:32
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Hi guys I posted this question before but i'm still unsure of how to solve it. Can anyone lend assistance please. I desperately need it.
Let's say Jim recently won the Lotto jackpot of $15 million so he decided to buy the house of his dreams home ($4m), 2 luxury vehicles ($1.5m), a basket ball team ($2m) and a vineyard ($1.5m). The remaining $6m he plans to put into savings. However, when he went to collect his winnings he was shocked he had to pay 25% tax on his winnings! In addition, he is told that the 75% he expects to receive will be used to buy an annuity from an insurance company of your choice. From this company, he will be paid in monthly installments (at the end of every month) over the next twenty years. Providing that the rate the insurance company provides is 5%. What is the total worth of Jim's take-home winnings?Would he still be able to buy all of those items? What size of jackpot would have allowed him to buy all the items he wanted?
Does anyone know how to solve this question?[color=#7b0046][/color]
Let's say Jim recently won the Lotto jackpot of $15 million so he decided to buy the house of his dreams home ($4m), 2 luxury vehicles ($1.5m), a basket ball team ($2m) and a vineyard ($1.5m). The remaining $6m he plans to put into savings. However, when he went to collect his winnings he was shocked he had to pay 25% tax on his winnings! In addition, he is told that the 75% he expects to receive will be used to buy an annuity from an insurance company of your choice. From this company, he will be paid in monthly installments (at the end of every month) over the next twenty years. Providing that the rate the insurance company provides is 5%. What is the total worth of Jim's take-home winnings?Would he still be able to buy all of those items? What size of jackpot would have allowed him to buy all the items he wanted?
Does anyone know how to solve this question?[color=#7b0046][/color]
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