In December 2020 25 years old Riya put a bet in a casino and walked away with the biggest jackpot in history - $9.3 million. After winning the same she was approached by friends and relatives for loans to which she responded by saying that the money is not worth exactly $9.3 Million because it had some conditions attached to it. The sum was to be paid in 20 annual instalments of $465,000 each at the end of each year. If that be so

What is the present value of the jackpot if the interest rate is 8%? - (10 marks)

What will be the present value of the jackpot if the first instalment is paid upfront and the remaining at the end of each year for the balance period?