The Powerball lottery is open to participants across several states. When entering the powerball lottery, a participant selects
five numbers from 1-59 and then selects a powerball number from the digits 1-35. In addition, there’s a $1 million payoff for anybody selecting the first five numbers correctly. • Show that the odds of winning the Powerball Jackpot are 1 in 175, 223, 510. • Show that the odds of winning the $1 million are 1 in 5, 153, 632. On February 18, 2006 the Jackpot reached $365 million. Assuming that you will either win the Jackpot or the $1 million prize, what’s your expected value of winning? Mega Millions is a similar lottery where you pick 5 balls out of 56 and a powerball from 46. Show that the odds of winning mega millions are higher than the Powerball lottery On March 30, 2012 the Jackpot reached $656 million. Is your expected value higher or lower than that calculated for the Powerball lottery?
1 answer:
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Answer:
The correct answer is Future value with compound interest and $478.25.
Explanation:
According to the the scenario, the given data are as follows:
Present value (PV) = $400
Rate of interest = 6%
Rate of interest ( compounded quarterly) (rate) = 1.5%
Time period = 3 years
Time period ( compounded quarterly) ( Nper) = 12
So, we have to calculate Future value with compound interest because it is asking for a amount after 3 year.
So, we can calculate the future value by using financial calculator.
The attachment is attached below.
So, FV = $478.25
