Question 5 (6 points) Saved After winning the lottery, you state that you are indifferent between receiving twenty $200,000 end-of-the-year payments (first payment one year from today), or a lump sum of $2,118,802.85 today. What interest rate are you using in your decision- making process such that you are indifferent between the two choices? 1) 5.00% 2) 7.00% 3) 6.00% 4) 8.00% Question 6 (4 points) Saved You dream of endowing a chair in finance at the local university that will provide a salary of $150,000 per year forever, with the first cash flow to be one year from today. If the university promises to invest the money at a rate of 10 % per year, how much money must you give the university today to make your dream a reality? 1) $15,000,000 2) $1,500,000 3) $2,857,143 4) This question cannot be answored