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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 $2,000,000 advertised jackpot. You can take annual payments of $100,000 at the end of the year for the next 20 years or $1,059,401 today. a. If your investment rate over the next 20 years is 8%, which payoff will you choose? b. If your investment rate over the next 20 years is 5%, which payoff will you choose? c. At what investment rate will the annuity stream of $100,000 be the same as the lump-sum payment of $1,059,401

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