You won the state lottery and took the payout as a $1,283,475 lump sum today. Your spouse has decided that you need to invest this money for the next 10 years and can expect it to earn an average annual rate of return of 7.18%
If this comes to pass, how much money will be in the account at the end of the period?
A) $8,471,253
B) $2,567,586
C) $1,920,388
D) $1,890,471
Answer: B
Explanation: B) FV = PV ∗ (1 + r)n = $1,283,475, ∗ (1.0718)10 = $2,567,585.66
MODE = END
INPUT 10 7.18 -1,283,475 0 ?
KEY N I/Y PV PMT FV
CPT 2,567,585.66
Business
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