Congratulations! You have just won a $40 million lottery and have elected to receive $2 million per

Question:

Congratulations! You have just won a $40 million lottery and have elected to receive $2 million per year for 20 years. Assume that a 4 percent interest rate is used to evaluate the and that you receive each payment at the beginning of the year.
a. What is the present value of the lottery?
b. How much interest is earned on the present value to make the $2,000,000-per-year payment?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...