A lottery winner will receive $1 million at the end of each of the next ten years. What is the future value (FV) of her winnings at the time of her final payment, given that the interest rate is 8.5% per year?

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The future value of an annuity is calculated using the formula:FV = PMT * [(1 + r)^n - 1] / rwhere:PMT is the payment amountr is the interest raten is the number of paymentsIn this case, the payment amount is $1 million, the interest rate is 8.5%, and the number of payments is 10. Plugging these values into the formula, we get:FV = $1 million * [(1 + 0.085)^10 - 1] / 0.085FV = $1 million * [2.1589 - 1] / 0.085FV = $1 million * 1.1589 / 0.085FV = $14.84 millionTherefore, the future value of the lottery winner's winnings at the time of her final payment is $14.84 million.

A Lottery Winner Will Receive $1 Million at the End