ou win the lottery! Your choices are

Take a single payment of $15 million today.

Take 15 payments of $2 million; first payment today and then $2 million at the start of every year for the next 14 years

a) If the interest rate is 2% compounded annually, which would you prefer?

b) If the interest rate is 8% compounded annually, which would you prefer?

c) At what annually compounded interest rate (to 5 decimal places) would you be indifferent between the two?

(You will need to build a spreadsheetto compute the present value of each of the $1 million payments, and then add them up. You can part c) by using the spreadsheets goal seek function.)