A state lottery commission pays the winner of the Million Dollar lottery 40 installments of $25,000/year. The commission makes the first payment of $25,000 immediately and the other n = 39 payments at the end of each of the next 39 years.

Assume that the balance on deposit with the bank earns interest at the rate of 4%/year compounded yearly.

Determine the present value (in dollars) of the 39 future payments. (Round your answer to the nearest cent.)

$

Determine how much money (in dollars) the commission should have in the bank initially to guarantee the payments. (Round your answer to the nearest cent.)

$