Question
1. A judge denied a 94-year-old woman s attempt to force a Lottery Commission to pay her $2.6 million winnings up front on the grounds
1. "A judge denied a 94-year-old woman s attempt to force a Lottery Commission to pay her $2.6 million winnings up front on the grounds that she otherwise won't live long enough to collect it all. The woman already received an immediate payment of $215,611, and she will receive 18 annual gross checks of $132,467. If a buyer offers to pay the woman $1.7 million for the 18 annual gross checks of $132,467, what is the buyer's annual interest rate? Enter your answer as a percentage between 0 and 100."
2. "You extablish an Individual Retirement Account (IRA) with an interest rate of 4.7%, compounded annually. You plan to deposit $2900 at the end of each year for a total of 26 years. However, you only deposit $967 at the end of year 5. If you deposit $2900 in the other 25 years (i.e., years 1-4 and years 6-26), how much do you have in the IRA at the end of 26 years?"
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