1. Jenna has recently won the lottery for $900,000. She has the option of receiving a lump-sum check of $600,000 or investing it in a fund that receives an annual year-end check for $50,000 for the next 20 years. Jenna would like to earn 10% on her investments. (Please show work)

End of Period: 20

Present Value of $1: .14864

Present Value of an Annuity of $1: 8.51356

a) What is the amount of the present value of the lump sum?

b) What is the amount of the present value of the annuity?