3. Massachusetts lottery winner, 94, sues to get lumpsum payment Dec 29, 2004 In 2004, a Massachusetts woman won 5.6 million dollars in the lottery, which would have paid her an initial gross payment of $283,770 and 19 more yearly payments of $280,000 each (the rst payment is at time 0 and the other payments occur at l, 2, 3, ..., 19). The only issue was that the winner, Louise Outing, was 94 years old at the time. "In March, Iwill be 95 years old. Do you realize that? Ninetyve in March. . .Now, you know I'm not going to live 20 years." the Everett woman said in a telephone interview. She wants the Massachusetts State Lottery Commission to cut her a check immediately for the full $5.6 million, minus taxes. But the commission has so far rejected that request, saying Megabucks winners get 20year annuities, not lumpsum payments. Ticket sales were 4 million dollars. Assume an interest rate of 10%. 21. Assuming that the payments are made over 20 years, how much money the lottery commission will have in their bank immediately after the last payment of $280,000? b. If the commission had decided to pay Ms. Outing a lump sum at that time, how much would that be (beforetax amount)