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9- The National Lottery estimated a prize of S1000,000. Assume you were lucky enough to win the prize. Your prize can be taken either in

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9- The National Lottery estimated a prize of S1000,000. Assume you were lucky enough to win the prize. Your prize can be taken either in the form of $40,000 at the end of each of the next 25 years or as a lump sum of $500,000 paid immediately. (5 marks) a. If you expect to be able to eam 6 percent annually on your investments over the next 25 years, which alternative should you take? Why? 10-Suppose you have two banks to borrow from. The first bank provides 8% compounded semiannually. The second bank provides 7.9% compounded monthly. Which bank you will choose and why? (4 marks)

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