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From: daver@hp-pcd.UUCP (daver)
Newsgroups: net.consumers
Subject: Re: Question about Sweepstakes
Message-ID: <26400005@hpcvrd.UUCP>
Date: Tue, 7-Jan-86 14:49:00 EST
Article-I.D.: hpcvrd.26400005
Posted: Tue Jan  7 14:49:00 1986
Date-Received: Mon, 13-Jan-86 08:19:01 EST
References: <474@iheds.UUCP>
Organization: Hewlett-Packard - Corvallis, OR
Lines: 12
Nf-ID: #R:iheds:-47400:hpcvrd:26400005:000:530
Nf-From: hpcvrd!daver    Jan  7 11:49:00 1986

>  Reading the fine print on the bottom of one of the prime time
> advertisements I discovered the "lotto" style of payoff.  The $10
> million is given out in $333,333 per year.  The rest is reinvested
> by the company and they make money.  They don't lose $10 million
> suddenly.

Using my HP-41CX with the new Advantage ROM Time-Value-of-Money routines I find
that at only 8% annual interest rate an annuity which pays $333,333/year for
30 years would cost $4,052,798, a lot less than $10 million.

Dave Rabinowitz
hp-pcd!daver