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The Super Ball lottery was won by Joan; her winnings were $500,000.00 to be paid in quarterly payments of $12,500.00 each over the next 10 years. How much must Super Ball deposit in an account paying 8 percent interest compounded quarterly for 10 years in order to meet their commitment to Joan?

Respuesta :

lilaipo

A = P((1+r/n)nt)

A = money earned from lottery & from interest

P = 500,000.00 r = 8% n = 4x t = 10

A = 500,000.00 ((1+ 0.08/4) 4x10) = 1,104,019.83

The total money that Super Ball should deposit in Joan's account is $1,104,019.83.

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