Lottery Winnings

The $$59\mathrm{.}4$ million lottery payment that you just won actually pays $$2\mathrm{.}2$ million per year

for $27$ years. If the discount rate is $12\mathrm{.}70\%$ and the first payment comes in $1$ year.

a$.$ What is the present value of the winnings? $($Do not round intermediate calculations.

Enter your answer in millions rounded to $2$ decimal places.$)$

Present value

$$15\mathrm{.}05$

million

b$.$ What is the present value of the winnings, if the first payment comes immediately? $($Do

not round intermediate calculations. Enter your answer in millions rounded to $2$

decimal places.$)$The $$59\mathrm{.}4$ million lottery payment that you just won actually pays $$2\mathrm{.}2$ million per year for $27$ years. If the discount rate is $12\mathrm{.}70\%$ and the first payment comes in $1$ year.

a$.$

What is the present value of the winnings? $($Do not round intermediate calculations. Enter your answer in millions rounded to $2$ decimal places.$)$