When you "win $1,000,000" you do not GET a million dollars....you either get a 20-year ANNUITY that pays out a total of a million bucks over 20 years, OR you get a "lump sum" payment of around $400,000
Tell your teacher he/she needs to ask more realistic questions...
the simple answer is 1000000 x (1.03)^10 = 1343916.38
Haha why are you asking me if you have the answer?!
On a whim you decide to go and buy a lottery ticket and you must be lucky because you win $1,000,000. Being a logical person you decide to invest the money at 3% for 10 years until you are ready to start a family. At the end of the 10 years how much will your investment be worth?
A. $1,384,000
B $11,464,000
C $1,344,000
D. $744,000
