You just won a lottery - congratulations! your parents have always told you to plan for the future, so since you already have a well- paying job you decide to invest rather than spend your lottery winnings. the payment schedule from the lottery commission is $100,000 after taxes at end of year one and 19 more payments of exactly $100,000 after taxes in equal annual end- of- the- year deposits (i. e., the first of the next 19 deposits is one year from today) into your account pays 7% compounded annually. how much money will be in your account after the last deposit is made?

$2,027,087.791

Explanation:

Given that,

Lottery commission = $100,000

Remaining 19 payments annually = $100,000

Compounded payment = 7%

Total compounded payment till end:

Where,

A0 = Compounded payment at first deposit = $7,000

t = Total time in years = 20 years

n = No. of compounding periods per year = 1

r = Nominal annual interest rate expressed as a decimal = 0.07

Therefore,

               = 7,000 × 3.8696

               = $27,087.79

After 20 years,

Total amount deposited will be = $20,00,000 + $27087.79

                                                     = $2,027,087.791

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.