A 55-year-old retired laborer from Lowell, KY., who has spent much of her working life picking up after others walked away Friday with the largest lottery jackpot in state history. She stepped timidly into the spotlight Friday at lottery headquarters, where she chose the lump sum instead of annual payments of $11,300,000 million for 26 years.

1. If the discount rate used is 8%, what will be the amount of her check?

b. If the lotto check is deposited in an account that earns 12%, how much will it be worth when she is 67 years old?