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After years of playing the lottery, you just won $10,000,000. Now, you have to figure out...

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Finance

After years of playing the lottery, you just won $10,000,000.Now, you have to figure out how you want it paid to you. You cantake a lump sum now before tax, (yes, Uncle Sam will eventually gethis part), or you can take annual payments at the end of each year(also before tax). The interest rate is 4% and if you do take thepayments, they will be paid over 20 years.


1) What is the lump sum payment that you would receive today?


2) How much would you have received in total at the end of the 20years if you took the payments?

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