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a. i. You are scheduled to receive $20,000 in two years. When you receive it, you will invest it for six more years at 8.4
a. i. You are scheduled to receive $20,000 in two years. When you receive it, you will invest it for six more years at 8.4 percent per year. How much will you have in eight years? ii You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming youre around to collect), 80 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent?
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