1. Katheryne won the state lottery grand prize of $1 million. She can choose to take a lump sum payment or she can accept annual payments over 20 years. The lump sum payment will be calculated by the state lottery board as if it were a 20-year annuity at 8% interest compounded annually. What is the lump sum (present value) value of Katheryne's lottery winnings? What will her winnings from the lottery be if she accepts the lump sum payment and the IRS takes 30% of her payment as an income tax in that year