(Calculating the PV) A scam artist collected $20 million from gullible investors for oil-well drilling scheme. The scam artist promised that he would pay off the investors in full within eight years if the oil wells, for some reason, were not drilled. He purchased zero-coupon bonds that paid off the $20 million in a single payment at the end of eightyears. He then mailed the bonds to his investors, pocketing the difference between the price of the bonds and the $20 million, and skipped the country. the rate of return on the bonds was 9%

a. What is the present value of $20 million in 8 years discounted at 9%?

b. How much did the scam artist pocket?