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a lottery winner is given two payment options: receive 131 million dollars in 25 yearly installments of equal size, the first payable immediately, or receive a single immediate payment of 70.3 million dollars. assuming that these plans are of equal value to the state lottery system, what interest rate is the state getting on its investments?

Respuesta :

The plans are of equal value to the state lottery system, the interest rate of the state getting on its investments is 7.45 million dollars.

What is lottery system?

Lottery system is defined as a popular lotto playing tactic that syndicates and individual players employ to increase their chances of winning if they match some of the randomly selected numbers.

Interest rate is defined as the sum that the lender charges the borrower in addition to the principal amount.

Interest rate = ( Simple Interest × 100 ) / ( Principal × Time ).

Interest rate = ( 131 x 100 ) / ( 70.3 x 25 )

Interest rate = 7.45 million dollars.

Thus, the plans are of equal value to the state lottery system, the interest rate of the state getting on its investments is 7.45 million dollars.

To learn more about lottery system, refer to the link below:

https://brainly.com/question/11188479

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