To the right is an expression for the Present Value of a $1 million lottery payout if payments are $50,000 per year for 20 years for each $1 million in winnings. If interest rates can be expected to stay fixed at 5% for the entire period each dollar won is worth only about 60 cents today.

    But what if interest rates go up? If interest rates are as high as 7.5% your winnings are worth only about 50 cents on the dollar in today's terms.

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