```9:30 AM Class Group 5

Tyler Larrivee

Habibullah Olomi

Stephen Miske

Pedro Muniz

Lottery Annuities

\$50,000 Monthly payment

-25% Federal taxes (\$12,500)

-5% State Taxes (\$1,875)

\$35,565 Amount received at the beginning of every year.

\$35,565 * 6% Interest =\$2,137.50

\$2,137.50 * 25% (Federal Tax on interest)=\$534.38

\$2,13750

-\$534.38

\$1603.12 * 5% (State Tax on interest)= \$80.16

\$1603.12

- \$80.16

\$1522.96 amount of interest received after 1st payment.

\$35,565 +\$1522.96 =\$37,087.96

\$37,087.96

+\$35,565.00 2nd Payment

\$72,772.96

\$72,772.96 * 6% interest = \$4,366.38

\$4,366.38 * 25%(Federal Tax on Interest) =\$1,091.60

\$4,366.38

-\$1,091.60

\$3,274.78 * 5% (State Tax on Interest) =\$163.74

\$3,274.78

-\$163.74

\$3,111.04 Interest after 2nd payment

\$72,772.96

+\$3,111.04

+\$35,565  3rd Payment

\$111,509.00 *6%  = \$6,690.54

\$6,690.54 '' (25%) =\$1,672.64 =\$5,017.90

\$5,017.90 '' (5%)= \$341.78 =\$6,493.90

\$111,509.00

+\$6,493.90

+\$35,565 4th Payment

\$194,019.76 After 4th payment

.

.

.

\$1,091,631.13 *(6%) =\$70,435.40

\$70,435.40- (25%)= \$17,608.85= \$52,836.55

\$52,836.55- (5%)= \$2,641..33 = \$50,185.22

\$1,091,631.13

+ \$  50,185.22

+ \$  35,565 last Payment

\$1,259,733.58 Amount received at the end
```