“You just won the lottery worth $310M. Remember, you could have taken the 26 annual payments, but you feel that you could invest better and decided to take a lump sum. You cannot forget to pay NYS and Federal income taxes of 7.0% and 35%, respectively. Because interest rates have fallen over the past years, The lottery discounts the annual payments at 5.0%.”

What is the lump sum amount that you would receive before taxes from the lottery office?

310M?

What is the lump sum after taxes deposited into your checking or savings account after taxes?

would it be this 310,000,000 x .42 = 130200000

If you could invest all the winnings at 9.0% on average, what would your annual before-tax return be on average?

then do i do a Future value calculation 9% annual for 26 years

What would your annual after-tax return on the investment be on average?

take answer from #3 and times it by .42 % or 5% i am thinking 5?

“You just won the lottery worth $310M. Remember, you could have taken the 26 annual payments, but you feel that you could invest better and decided to take a lump sum. You cannot forget to pay NYS and Federal income taxes of 7.0% and 35%, respectively. Because interest rates have fallen over the past years, The lottery discounts the annual payments at 5.0%.”

What is the lump sum amount that you would receive before taxes from the lottery office?

310M

What is the lump sum after taxes deposited into your checking or savings account after taxes?

0.07+0.35 = 0.42 or 42% tax of total. Your total that YOU are left with is the other amount. 0.42-1.0 = 0.58

If you could invest all the winnings at 9.0% on average, what would your annual before-tax return be on average?

Calculate using the $310M. Unless I’m reading the question wrong.
then do i do a Future value calculation 9% annual for 26 years. With the total, find the average annual return.

What would your annual after-tax return on the investment be on average?

Use the new information provided to try and get this one.