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Lottery. Your dreams of becoming rich have just come true. You have won the State of Tranquility's Lottery. The State offers you two payment plans

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Lottery. Your dreams of becoming rich have just come true. You have won the State of Tranquility's Lottery. The State offers you two payment plans for the $1,000,000 advertised jackpot. You can take annual payments of $20,000 at the end of the year for the next 50 years or $180,833 today. a. If your investment rate over the next 50 years is 13%, which payoff will you choose? b. If your investment rate over the next 50 years is 9%, which payoff will you choose? C. At what investment rate will the annuity stream of $20,000 be the same as the lump-sum payment of $180,833

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