1. Suppose that you will receive annual payments of $20,000 for a period of 10 years. The first payment will be made 5 years from now. If the interest rate is 5%, what is the present value of this stream of payments? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2. The $47.5 million lottery payment that you have just won actually pays $1.9 million per year for 25 years. The interest rate is 10%.

a. If the first payment comes in 1 year, what is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in dollars, not millions, rounded to 2 decimal places.)

b. What is the present value if the first payment comes immediately? (Do not round intermediate calculations. Enter your answer in dollars, not millions, rounded to 2 decimal places.)