Instructions
You will create this assignment following the Assignment Detail instructions below.This assignment will be submitted in the Unit 1 - Submission Assignment lesson in intellipath.
Review the tutorial titledHow to Submit the Intellipath Submission Assignment.
Please submit your work to this week’s Intellipath Unit Submission lesson. Click the Upload button within the submission lesson to access the submission area. Click the Select File button to upload your document, and then click "OK" to finish.
Assignment Details
Who Wants to Be a Millionaire?
- You just won $1 million dollars in the lottery! They offer you two options for your winnings: a lump sum payment right now, or $100,000 a year over the next 10 years. Current 10-year interest rates are at 5%, and the current tax on lottery winnings is 40%.
- What is the amount you will receive today with the lump sum option?
- Which option would you select? How would you present your argument for your decision in a debate?
- Sorry, you didn’t win the lottery, but here’s a way you can still be a millionaire! Starting at age 22, every night you take $5 out of your pocket and put it in a manila envelope (title it “Lottery Winnings”). At the end of the year, you place the money from the envelope in a stock fund with an average interest rate of 10%.
- How much will you have in the account when you retire at age 65?
- What would be different if you started this plan later in your life?
Your submitted assignment must include the following:
Submit a double-spaced Word document of 1–2 pages that contains your answers to the four questions listed in the assignment description, any calculations you performed, and all formulae that were used. Also, in the Word document, insert an Excel spreadsheet that shows how you arrived at your answers, orscreenshot of the online calculator utilized with your answers shown.
The use of 3 scholarly sources (e.g., textbook, article from the CEC Library) is required.
AIU (CEC Library)