UMass FINANCE 301 – Return to Jack and Diane
Return to Jack and Diane and the âSet for Life Lotteryâ. The prize is 20 consecutive annual payments of $50,000 beginning one year from today. And, as an added bonus, the fifth amount includes an extra amount of $10,000. Jack and Diane decide to invest all amounts in a bank to earn the interest rate of 5%. How much will they have at the end of year 20?