What do you call this type of annuity


Problem: Suppose you were the sole winner of the Power Ball Lottery and the corresponding $500 million jackpot.  You may either receive either a lump sum payment now, or a series of twenty-five $20 million payments per year, beginning immediately for 25 periods.  If the current 25-year interest rate is 4.5%, compounded annually, what should the lump sum payment be today to make you indifferent between receiving a lump sum payout or receiving the $20 million per year 25-year annuity set of payments?  What do you call this type of annuity?

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Finance Basics: What do you call this type of annuity
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