You just won the $87 million Ultimate Lotto jackpot. Your winnings will be paid as $2,900,000 per year for the next 30 years. If the appropriate interest rate is 6.2 percent, what is the value of your windfall

In order to calculate the value of your windfall we would have to calculate the following formula:

Value of windall=P*[1 - (1: (1+r) ^n) ]:r

According to the given data we have the following:

Interest rate per annum=6.20%

Number of years = 30

Number of compoundings per per annum=1

Payment per period (P) = $2,900,000

Therefore, Value of windall=$2,900,000 * (1 - (1: (1+6.2%) ^30)) : 6.2%

Value of windall=$39,078,091.71

The value of your windfall is $39,078,091.71