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Suppose a state lottery prize is to be paid in 25 payments of $120,000 each at the end of each of the next 25 years. If money
with a present value of $140,000, what is the size of the withdrawals that can be made at the end of each quarter for the nex
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(+0). An= R. 25 0.08 = 84. = 100 0.08 The me present Value of the prize The present value of the annuity is 975e The present1 lise the formula An= R. i R = ? -40 (1+0.01675) 1, 49, 000 = R ES 0.01675 1,40,000 = R (28.98) R= $ 4830.92 The size of the

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