3.

If you purchase the ticket for

• $2.0 million = PVA
• Payment Periods = 16 years
• Annual Payment = $240,245

PVA = $2,000,000 PVA = $1,500,000

PVA $2,000,000 PVA $1,500,000

Annual Payment $240,245 Annual Payment $240,245

Period payment 16 years Period payment 16 years

Annual Rate of return 10.67% Annual Rate of return 17.4%

Treasury bonds Noiv02-07 15 year GNMA

Annual Payment $ 240,245 Annual Payment $240,245

Period payment 16 Period Payment 16 years

Annual rate of return 7.39 % Annual rate of return 7.24%

PVA $2,375,500 PVA $2,395,590

15 years FNMA 15 years FHLMC Treasury bonds Feb02-07

Annual Payment $ 240,245 Annual Payment $ 240,245 Annual Payment $ 240,245

Period payment 16 Period payment 16 Period payment 16

Annual rate of return 7.24 % Annual rate of return 7.18 % Annual rate of return 7.3 %

PVA $ 2,395,590 PVA $ 2,043,714 PVA $ 2,126,408

”Fair Market Value” of the ticket according to prices and yields in the capital market in current
condition, in this case(July 1992) are the 15 year GNMA and 15 year FNMA