Jeff’s Money Math Quiz #14
Each post will contain one question with a set of multiple choice answers. Pick your best choice. Good hunting!
Lottery Payout
A $10 million lottery pot is divided into equal increments over 20 years. The government retains 35% of the total for taxes (assume only one tax bracket). How much could the winner expect to receive after taxes each year?
- A. $ 350,000
- B. $ 35,000
- C. $ 325,000
- D. $ 500,000
Bonus question #1: How much total money will the winner collect after 20 years?
Bonus question #2: If a single lump sum payout is 50% of the initial lottery pot, what is the total payout after taxes?
Be the first to respond
Answer will be available tomorrow
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Comments: 2
Answer to the Bonus Question #1: $6,500,000
Answer to the Bonus Question #2: $3,250,000